The United States Securities and Exchange Commission (SEC) chair, Gary Gensler, recently addressed the concerns of Coinbase and other crypto firms that claim the SEC’s approach to crypto regulation is unclear. During a keynote speech at the Financial Markets Conference, Gensler reiterated that there are already existing guidelines for the crypto sector, which should be properly complied with.
Coinbase and other crypto firms have been critical of the perceived absence of clear regulation and the SEC’s apparent “regulation by enforcement” approach to the crypto market. However, Gensler emphasized that the rules for crypto assets have already been published and that players in the field have been operating largely non-compliant.
Gensler explained that the necessary rules are already in place to regulate various aspects of the industry, such as custody of assets, registration of securities offerings with the SEC, and operations of exchanges, broker-dealers, and advisors. He added that there is nothing about new technology, like blockchain, that makes it non-compatible with existing public policies.
The SEC chair’s standpoint is that most crypto assets, with the exception of Bitcoin, fall under the securities definition of an investment contract. Gensler stated, “If the public is investing money and anticipating profit based upon the efforts of others, in a common enterprise, that’s a security.” He further stressed the need for financial intermediaries and nodes in the network to comply with these regulations if they have securities on their platforms.
In defense of regulation, Gensler’s remarks clarify that the SEC is not against the crypto industry, but rather, it is ensuring the proper compliance to protect investors and maintain the integrity of the market. However, critics might argue that these existing regulations are not sufficient or adequately tailored for the rapidly evolving crypto and blockchain landscape.
In conclusion, Gensler’s stance on the matter reaffirms the SEC’s commitment to regulating the cryptocurrency landscape. While the crypto industry demands clearer guidelines, Gensler insists that the existing rules are sufficient to protect investors and ensure market integrity. It remains to be seen if further developments and dialogues between the SEC and the crypto industry will lead to a more balanced and agreeable regulatory framework in the future.
Source: Cointelegraph
