Gary Gensler Faces Flak For ‘Misleading’ Talk On Crypto Market

Crypto News: In sheer contrast to the market perception, U.S. Securities and Exchange Commission (SEC) chair Gary Gensler reiterated that laws around digital asset activities in the US are clear. He explained the various proposals the regulatory agency brought in to achieve the goal of investor protection. Gensler went on to say that the SEC has the enforcement ‘tool’ to root out non-compliant crypto market players. However, the crypto community came out strongly against him, calling the statements ‘misleading’.

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Amid all the talk of lack of regulatory clarity in crypto space, the SEC chair feels crypto firms and tokens should come forward “on their own” under compliance. “Crypto intermediaries should structure their businesses to comply with our laws.” This brings the question as to how the many thousands of cryptocurrencies will pass the SEC’s regulatory lens. He adds that the crypto businesses should follow “the same rules that everyone else in the securities markets” did.

‘Crypto Firms Not Lining Up To Register With SEC’

Stating that the crypto firms are not showing interest in registering with the SEC, Gensler said the businesses rely on being non-compliant. In his latest write-up, the Securities and Exchange Commission chair clarified that the only way forward to resolve what seems to be the regulatory deadlock is if crypto firms operate within the existing laws. The companies that came forward to register are non law abiding, he indicated.

“At times, it has felt like some have sought a stamp of approval for noncompliant activity, rather than changing a fundamentally non-compliant business model rife with conflicts.”

Gensler had on several occasions maintained his controversial statements that all other crypto tokens except Bitcoin would be considered securities. In line with this, he reiterated that the SEC wants to ensure investors get protections that they would receive in any other securities market. This argument was met with sharp criticism, criticizing Gensler of pushing away innovation from outside the United States with regulatory clarity. In his latest statement, the SEC chair also mentioned that he finds the talk of ‘lack of clarity around crypto laws’ unconvincing.

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Reacting to this, Dave Weisberger, CEO of a crypto firm, called his statements ‘misleading’. He raised doubts over the compatibility of crypto businesses with the process that registers traditional companies. Some others have raised the longstanding view that the SEC should work closely with the crypto players in crafting a new regulatory guidance.