• SEC Chair Gary Gensler defended the recent crackdown on crypto exchanges, claiming they were warned.
• Gensler criticized exchanges for not registering and complying with securities laws.
• Gensler cited leaked chat logs from a former Binance Compliance Lead to back up his statements.
SEC Chair Defends Crypto Crackdown
SEC Chair Gary Gensler has defended the recent crackdown on crypto exchanges, stating that they were warned. He criticized them for failing to register and comply with securities laws, arguing that this deprives investors of critical protections. Additionally, he dismissed claims from exchanges that stated they lacked “fair notice” that their conduct could be illegal.
Gensler Goes After Binance and Coinbase
Gensler also addressed the claims by Coinbase and Robinhood that they tried to comply with the SEC and failed. He suggested that some exchanges sought meetings with the agency but were unwilling to make the necessary changes to comply. To back up his statement, Gensler cited leaked chat logs from a former Binance Compliance Lead which stated that „We are operating as a fking unlicensed securities exchange in the USA bro.“
Gensler Explains SEC’s Views on Crypto Assets
Gensler highlighted the need for crypto security issuers to register the offer and sale of their investment contracts. He reiterated his view that most crypto assets are securities, as their value depends on the efforts of others rather than an individual investor’s own effort or capital risk-taking.
Implications for Crypto Market
The implications of Gensler’s stance have significant implications for crypto intermediaries and the broader crypto market. The future of crypto regulation under Gensler’s leadership could reshape the crypto landscape, making it more secure and compliant with existing regulations while ensuring investors’ safety is taken care of properly..
The news from SEC’s latest crackdown still reverberates through crypto markets worldwide. With such statements coming directly from its chairman, it is clear that stricter enforcement measures will be taken against non-compliant entities in order to protect investors’ interests in this still young asset class.