- Gensler calls on the cryptocurrency exchanges to register with the SEC.
- The latest crypto fraud cases have brought the need for regulation to the surface.
- Crypto regulation is adequate under existing laws; there is no need for new laws.
SEC Chair Gary Gensler recently raised the alarm and directed his warning to crypto exchanges, saying that they should obey the current laws. Gensler called for greater compliance with securities laws as the legal proceedings between the ‘SEC’ and top crypto trading platforms such as ‘Coinbase,’ ‘Kraken,’ ‘Binance’ continue.
Reiterating his comments made during an interview with CNBC, he pointed out that the primary mission of the SEC is to guard the investors in a market filled with fraudsters, scams, and other malicious players. Gensler also spoke about the cases of fraud that have recently become more frequent in the field of cryptocurrencies, citing the examples of people who received legal charges.
He directly referred to some of the personalities in the crypto industry, including SBF, the former FTX CEO; CZ, the Binance CEO; and Do Kwon, the Terra co-founder. These are people either in jail or have been arrested for extradition to be involved in alleged fraud in the sector. As Gensler pointed out, this underlines the necessity of having the proper legislation to regulate such services for the benefit of the public.
Regulations Are Clear, Says Gensler
Several executives have called on regulators to provide more stringent laws concerning crypto exchanges. However, Gensler argued that the current securities laws are sufficiently clear. He pointed out that these laws have effectively controlled markets for the past 90 years, and they apply to cryptocurrencies.
Gensler also stated that the fundamental concept of investor protection remains the same, regardless of the application of blockchain or digital assets. “If you store something on an accounting ledger, investors still need to have basic protections,” he remarked. Through its measures, the SEC has been keen on regulating cryptocurrencies, which has raised eyebrows among lawmakers.
However, some of the policies implemented by Gensler have been endorsed by lawmakers in Washington, such as Senator Elizabeth Warren, who has been famed for advocating for higher regulations in the crypto industry. Nevertheless, Gensler has kept his mind on policing the crypto exchanges and making them follow the legal norms and rules, further escalating the crackdown against unregulated exchanges by the SEC.
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