US SEC Chair Responds To Allegations Of Making It Difficult For Crypto To Enter the Mainstream

US Securities and Exchange Commission’s chairman Gary Gensler has reacted to the accusations related to posing additional complications and challenges to the crypto industry in its adoption by the mainstream. As per the chairman of the securities regulator of the United States, the endeavors of the agency are targeting the provision of protection to the investors taking benefit of the existing means.

As per him, this is to guarantee that the members of the market abide by the regulations, taking into account discussing straightly with them. These things were mentioned by the SEC in his recent interview with the well-known “Squawk Box” show of the prominent media outlet CNBC on the 10th of February. The SEC chair has formerly been accused of suffocating the crypto world.

Gary Gensler Claims Talking Straightly to Market Members for Regulation

He mentioned that just some of the tokens possess registered mediators. However, he voiced apprehensions regarding the disagreements in the business models of the respective projects. Andrew Ross Sorkin (the CNBC anchor) questioned the SEC chairman about the reason behind preferring enforcement as the method for regulation. While responding to this question, the SEC chairman claimed that the agency is utilizing the existing measures.

According to Gensler, they are straightly talking to market members. In his words, the regulator conducts meetings as well as informs them on how they can abide by the regulations. The chairman stressed the significance of the technology-neutral regulations, saying that is the objective of the agency. Simultaneously, he brought to the front that the crypto sector requires laws and rules that are time-tested for shielding investors.

He added that the crypto industry can only witness survival if time-tested regulations are implemented on it. In addition to this, he focused on public disclosure. According to him, a complete, truthful, and fair disclosure copes with the conflicts as well as disaggregates the respective businesses.

In his words, this ensures that the respective businesses do not have a right to the consumers’ assets with the use of their funds. He additionally cautioned the crypto market by saying that the pathway for some crypto companies is getting astonishingly short. The chairman says that the respective firms intend to circumvent complete disclosure carried out by prominent tech giants such as Apple.

Gensler is a Democrat who is of the view that 1933’s Securities Act is sufficient for the regulation of the crypto market. The respective approach is in direct contrast with the rest of the regulatory bodies. Rostin Behnam (the chairman of the Commodity Futures Trading Commission) pointed toward a willingness to operate with the US Congress on crypto regulation this year.

SEC Commissioner Says Agency Did Not Talk to Kraken Before Crackdown

Despite the claims of Gensler regarding direct discussions with the market members, Hester Peirce (an SEC Commissioner) condemned the agency in her speech on the 10th of February. The commissioner stated that the regulator did not sit with Kraken (the crypto exchange) in advance of cracking down on the staking service of the company.

In her former blog post, the commissioner disagreed with the claims of the Securities and Exchange Commission (SEC) that the crypto exchange should have registered the staking facility thereof with the regulator. She elaborated that the SEC does not provide any clear directives regarding how the registration of the product could be done by Kraken.

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