SEC Chairman Gary Gensler is certainly not having fun with the recent boom in the crypto space. The SEC chief has issued another stern warning for crypto exchanges and companies that remain outside the scope of regulation.
Thus, he hinted that crypto companies are more likely to be successful if they abide by regulatory standards under existing tax compliance, insider trading, and money laundering.
Gensler said that unregulated cryptocurrency markets and companies operating outside the scope of regulation “will not end well.” Gensler’s comments came Monday, September 27, at the Code conference in Beverly Hills, California. He further added:
“There are trading venues and loan venues where they congregate around these, and they have not just dozens, but hundreds and sometimes thousands of chips. It won’t end well if it stays out of the regulatory space. “
Calling the current cryptocurrency market “Wild West,” the SEC chairman warned against increased regulatory oversight. Furthermore, the SEC is not alone in considering increasing crypto regulations. Along with the SEC, some of the investor groups have recently advocated for regulatory crackdown. In fact, this group has stated that there is an urgent need for the SEC to act quickly in this regard.
Take SEC Warnings Seriously
Although Gary Gensler was thought by many to be a crypto-friendly regulator, he was a tough guy. Gensler recently hinted that the SEC will need to clean up the crypto market before it “overflows” and therefore called for stronger investor protections.
Crypto firms should take the SEC’s warning seriously now. Even giants like Coinbase have recently had to give in under pressure from the SEC. Last week, Coinbase announced that it was suspending its USDC loan project for fear of the SEC’s lawsuit.
We already know what happened between Ripple and the SEC over the last few months with dozens of hearings so far. However, the biggest problem with the SEC has been that it did not present a “clear regulatory framework” for the crypto space. Last week, Senator Pat Toomey attacked the SEC by demanding “transparency and objectivity” in the regulator’s crypto vision.
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About the Author
Bhushan is passionate about FinTech and has a good talent for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrencies. You are continually in a learning process and you stay motivated by sharing your acquired knowledge. In his spare time, he reads thrillers and occasionally explores his culinary skills.