The US Securities and Exchange Commission (SEC) chair Gary Gensler revealed the readiness of the lead regulator to assist crypto firms comply with federal law. Speaking during the 27th Annual Financial Markets Conference, Gary dismissed the criticism that SEC failed to offer meaningful guidance for the crypto companies, instead imposing enforcement actions.
False Narratives Set to Attract SEC’s Enforcement Actions
Gensler’s keynote speech pushed back the criticism and instead indicated that some crypto firms are founded upon false narratives. He defended the wave of enforcement actions by informing the attendees of the Monday, May 15 conference convened by the Atlanta Fed that the rules are in existence.
The event-themed Old Challenges in New Clothes attracted notable speakers drawn from financial authorities and executives of digital economy players. SEC’s chair overlooked the digital assets market till the Federal Reserve Bank of Richmond chief executive Tom Barkin introduced the subject.
Barkin questioned the SEC’s intention in the ongoing suit against Coinbase. The Richmond Fed president wondered whether the Gensler-led regulator is lagging behind on enforcement with cryptos.
Gensler lauded Satoshi Nakamoto for creating an exciting crypto field through his innovation. SEC’s chair dismissed the narrative that it fell behind enforcement with cryptocurrencies. He cited the 140 cases SEC initiated against the crypto firms and parties to underline its commitment to enforce compliance in the digital markets industry.
Gensler Dismisses the Decentralization Tag by Crypto Companies
In his Monday speech, Gensler reminded the attendees of the vulnerability of the public to cryptocurrency firms creating fraudulent business models. The executive made a scathing attack on the crypto firms riding on the false narrative of decentralization. Instead, they secretly lean towards centralization as scores of entrepreneurs call the shots behind the website.
Also read:Often, the business models often feature receiving customer funds and later commingling. Gensler delved into the decentralization tag by crypto firms. He admitted that all crypto tokens with the exception of Bitcoin often have entrepreneurs operating Twitter and websites.
Gensler wondered why the cryptocurrency industry stakeholders blame SEC for lacking clear-cut regulations whose scope aligns with recent innovations. The regulator appeared concerned when prompted to respond to the position regarding the perennial request for regulatory clarity.
Gensler dismissed instances that new technology would run operations considered non-consistent with the existing public policies. He restated his submission before the Congressional hearing that rules applicable to the cryptocurrency industry are already existing. He wondered why the crypto industry stakeholders still struggle with non-compliance.
Security Regulations to Guide Crypto are Existing
The SEC boss in his testimony before the House Appropriations Subcommittee on the Financial Services and General Government. He reiterated his response to Congressman Sanford Bishop that rules to guide the crypto market already exist.
Gensler indicated that SEC cannot make the regulations clearer, thereby dismissing the usual refrain from crypto operators demanding regulatory clarity. He considered the provisions as securities regulations that also guide disclosure whenever a party attempts to raise money from the public.
Gensler’s speech on Monday echoes the previous pronouncement in reference to financial intermediaries within the traditional money markets. Similar to rent-collecting nodes, crypto companies should adhere to the existing rules given their holding they consider securities within their platform.
Gensler admitted that compliance with the existing regulations is proving difficult for crypto companies. He restated the agency’s devotion to facilitating the crypto startups to realize compliance.
Critics opposed to the offers extended by SEC consider such as disingenuous. SEC is facing in-house criticism from crypto-friendly proponent Hester Peirce who dismissed SEC’s assertions of providing registration means.
Gensler’s pronouncement to facilitate crypto companies has in the past witnessed criticism from Republican lawmakers. In particular, the lawmakers consider demanding firms register as a willful misrepresentation of non-existent processes.
Meanwhile, it is essential to observe the development in the US crypto regulation. Would the US replicate the move by the EU to introduce Markets in Crypto Assets (MiCA) rules?
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