SEC Chair Gensler Warns Crypto Exchanges: Compliance Is Key
• SEC Chair Gary Gensler defends the recent crackdown on crypto exchanges, stating they were warned.
• Gensler criticized them for failing to register and comply with securities laws.
• He suggested that some exchanges sought meetings with the agency but were unwilling to make the necessary changes to comply.
SEC Cracks Down on Crypto Exchanges
The Securities and Exchange Commission’s (SEC) latest crackdown on crypto exchanges has been defended by the SEC Chair Gary Gensler. He argued that crypto exchanges should have registered and complied with securities laws in order to provide investors with critical protections. Furthermore, he claimed that some exchanges sought meetings with the agency but then refused to make necessary changes in order to comply.
Gensler Warned Exchanges
Gensler dismissed claims from exchanges that stated they lacked “fair notice” that their conduct could be illegal. Instead, he suggested that they made a “calculated economic decision” not to comply, citing leaked chat logs from a former Binance Compliance Lead as evidence of this notion. He further stated that entities know the rules and must pay more than lip service if they want to abide by them.
Crypto Compliance is Possible
Gensler highlighted the need for crypto security issuers to register the offer and sale of their investment contracts in order for compliance to be possible. Additionally, he reiterated his view that most crypto assets are securities as their value depends on the efforts of others outside of just market forces like supply and demand.
Implications for Crypto Intermediaries
The stance taken by Gensler has significant implications for all crypto intermediaries such as Binance and Coinbase as well as the broader crypto markets overall; it appears likely that regulation under his leadership will reshape how cryptocurrencies are regulated going forward.
In conclusion, Gensler’s comments demonstrate his commitment towards enforcing securities laws when it comes to cryptocurrency activities while at the same time highlighting his view of which assets should be considered ’securities‘. It remains unclear what other regulatory actions may arise in response to this speech, however it serves as an important reminder of how seriously regulators take investor protection when it comes digital currencies