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The former head of internet operations at the U.S. Securities and Exchange Commission (SEC) has warned the crypto industry that “the regulatory onslaught is just beginning.” His warning comes on the heels of several recent enforcement actions taken by securities regulators against major crypto companies.
“The onslaught of SEC regulations is just beginning.”
Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark has warned of an escalating “regulatory onslaught” for the cryptocurrency industry. Stark founded the SEC Internet Enforcement Office, of which he served for 11 years. He also served as an SEC Enforcement Counsel during his 15 years, leading cyber-related projects, investigations, and enforcement actions.
In a tweet on Thursday, Stark said the SEC “attacked Blockfi for failing to register for a crypto lending program, blocked Coinbase from launching a crypto lending program, and placed Gemini/Genesis in the crypto lending program.” We attacked for the acquisition of . He warned:
Settling Down: The SEC’s regulatory onslaught is just beginning.
Last week, the SEC charged cryptocurrency exchange Gemini and crypto lender Genesis for “unregistered offering and sale of securities to retail investors through the Gemini Aan cryptocurrency lending program.” Last February, regulators took action against crypto lending platform Blockfee, which filed for bankruptcy in November. Additionally, securities regulators have threatened to sue Coinbase if the Nasdaq-listed cryptocurrency exchange launches his September 2021 lending program. Coinbase has since shelved that plan.
Stark is a cryptocurrency skeptic and regularly comments on social media about the dangers of investing in cryptocurrencies. “In cryptoland, the Ponzi shell game has continued and a death spiral may have begun,” he said last November. He stressed that crypto “has no FDIC insurance, SEC inspection teams, regulatory oversight, licensing, or consumer protection.” He warned about crypto investments:
You are 100% yourself.
Quoting Stark, CNBC Mad Money host Jim Cramer also warned about the SEC doing a “cleanup” of the cryptocurrency industry. He urged investors to get out of cryptocurrencies now.
Agree with John Reid Stark on cryptocurrencies, do you think the SEC regulatory onslaught is just beginning? Let us know in the comments section below.
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