Crypto markets showed signs of recovery this week following the news that the U.S. inflation might have slowed down. However, discussions on Twitter persist around the Securities and Exchange Commission’s (SEC) scrutiny of the cryptocurrency industry, with high-profile lawsuits filed against exchange giants Coinbase and Binance last week. SEC Chair Gary Gensler asserts that existing securities laws can regulate cryptocurrencies; while some argue that Gensler’s stance on the registration process with the SEC is misleading, others, like Gemini co-founder Cameron Winklevoss, claim that Gensler’s assertions are simply “hot air.”
As crypto approaches a crucial 36-hour period, Rep. Warren Davidson (R-Ohio) tweeted about a new SEC reform bill he created in collaboration with pro-crypto House Majority Whip Rep. Tom Emmer (R-MN), who has frequently criticized Gensler for driving the industry offshore through stringent enforcement actions. However, venture capitalist and Bitcoin advocate Nic Carter believes that U.S. regulators are mishandling stablecoins.
With the heat against the SEC intensifying from various quarters, a new subplot emerges in the form of Prometheum—a company with unclear origins now gaining attention in Congress as a paragon of compliance. Amid the SEC’s legal battles against industry giants such as Coinbase and Gemini, Prometheum has obtained approval for a first-of-its-kind Special Purpose Broker-Dealer (SPBD) for digital asset securities. While Ripple’s Chief Legal Officer Stuart Alderoty speculates a reference to an ancient Greek myth in the company name, Tyler Winklevoss, Cameron’s twin and fellow Gemini co-founder, suggests that Prometheum offers a model for winning Gensler’s favor.
In light of these events, the future of the crypto industry remains uncertain, with the SEC’s regulatory stance fueling ongoing debates and apprehension. While some argue that Gensler’s insistence on regulation under current securities laws is unreasonable, others consider it a necessary step toward the cryptocurrency market’s legitimization. The upcoming 36-hour critical period for crypto may shed further light on the SEC’s approach and its impact on the industry, with proponents and skeptics alike closely following the developments.
Source: Decrypt
