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U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has revealed that regulators will use all available tools to bring crypto platforms into compliance with its rules. Additionally, the SEC Commissioner said:
SEC Chairman Gensler on Crypto Regulation
SEC Chairman Gary Gensler on the importance of complying with cryptocurrency platforms after securities regulators indicted former Alameda Research CEO Caroline Ellison and former FTX executive Gary Wang for misleading stock investors. emphasized sexuality. The SEC boss tweeted Wednesday:
Until the cryptocurrency platform complies with proven securities laws, the risks to investors remain. Bringing the industry into compliance using all available tools remains a priority for the SEC.
In an interview with Bloomberg on Thursday, Gensler indicated that the SEC has just launched a crackdown on cryptocurrency companies that are not compliant.
Gensler explained that the “runway is getting shorter” for crypto companies to enter and register with the SEC, stressing that “this Wild West casino is a non-compliant middleman.” .
The SEC Commissioner also commented on the Proof of Reserve (POR) report that many cryptocurrency exchanges, including Binance, use to prove that they have sufficient funds to satisfy their customers’ withdrawals. Noting that this practice falls short of the disclosures necessary to protect investors, Gensler explained:
A proof of reserve is not a complete account of the company’s assets and liabilities, nor does it satisfy the segregation of client funds under securities laws.
Gensler suggested that cryptocurrency companies should “give customers confidence that their cryptocurrencies are really there” by “complying with proven custody, segregation of customer funds and accounting rules.” Did. The SEC focuses on financial recordkeeping for cryptocurrency companies.
Securities regulators and their chairmen have been heavily criticized by some for their enforcement-centric approach to regulating the cryptocurrency industry. Since Gensler and his SEC staff met several times with his former FTX CEO Sam Bankman-Fried (SBF), they have also come under scrutiny for the collapse of crypto exchange FTX.
Rep. Tom Emer (R-Minnesota) tweeted on Thursday. The MP further wrote:
Conducting behind-the-scenes regulatory transactions with bad actors is not a tool in the SEC’s toolbox.
Rep. Emmer said last month that the impact of FTX was not the failure of cryptocurrencies, but the failure of the SEC and Chairman Gensler. Minnesota legislators asked Gensler to testify before Congress about the cost of his regulatory failures.
Last week, the SEC Commissioner emphasized the importance of regulating cryptocurrency issuers and intermediaries. He previously said that while most crypto tokens are securities, the crypto space is largely non-compliant. The securities regulator recently released its strategic plan for the next four years, and cryptocurrencies are one of its top priorities. Gensler said in November that the SEC’s enforcement arm remains focused on crypto.
What do you think of SEC Chairman Gary Gensler’s statement on cryptocurrency regulation? Let us know in the comments section below.
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