• SEC Chair Gary Gensler defends the recent crypto crackdown, stating exchanges were warned.
• Gensler criticized crypto exchanges for failing to register and comply with securities laws.
• Gensler suggests that some exchanges sought meetings but were unwilling to make necessary changes for compliance.
SEC Crackdown on Crypto Exchanges
The Securities and Exchange Commission (SEC) recently launched a crackdown on crypto exchanges, including Binance and Coinbase. SEC Chair Gary Gensler defended the action, claiming that these exchanges had been warned about their conduct. He argued that they made a “calculated economic decision” not to comply with securities laws, depriving investors of critical protections.
Gensler Criticizes Crypto Exchanges
Gensler dismissed claims from these exchanges that they lacked “fair notice” of their potential illegality. He also addressed the claims by Coinbase and Robinhood that they tried to comply with the SEC and failed, suggesting that some exchanges sought meetings but were unwilling to make necessary changes for compliance.
Gensler on Crypto Compliance
Gensler highlighted the need for crypto security issuers to register the offer and sale of their investment contracts. He reiterated his view that most crypto assets are securities, as their value depends on the efforts of others. As evidence of this he cited a leaked chat log from Binance’s former chief compliance officer who bluntly said „We are operating as a fking unlicensed securities exchange in the USA bro.“
Implications For The Crypto Market
The future of crypto regulation under Gensler’s leadership could reshape the crypto landscape significantly. His stance has significant implications for both intermediaries and investors in the broader crypto market.
Overall it is clear from Genser’s statement that he intends to enforce stricter regulations around cryptocurrency companies going forward, making sure investors are properly protected at all times from potential fraudulent activity or negligence in compliance with laws governing digital assets investments