In a speech, Gary Gensler, the chairman of Securities and Exchange, announces that the rules have already been published. With great effort and determination, he resisted a plan of criticism that the SEC has not provided advice and guidance for crypto companies to stay in consent with federal law.
The other main financial authorities and Gensler as well are included in the 27th annual Financial Markets Conference. The Atlanta Fed held it. His speech hardly touched any digital assets market.
But, the president and CEO of the Federal Reserve Bank of Richmond, Tom Barkin, has brought up the subject. He asked about the SEC’s ongoing court case with Cionbase. He also asked Gensler if the agency had fallen behind on enforcement with cryptocurrencies.
Gensler Cleared His Stand Regarding Rules Regulation
Gensler replied that he doesn’t think the SEC is out of date, mentioning the 140 cases the agency has brought forth over the years. He also reminds the public how cryptocurrency companies build deceptive business models.
He added that it is a false statement that they are decentralized. Teams and websites often lead them. They work with the intention to take customers’ funds and mix them.
The SEC is on the radar these days for not clarifying the innovative crypto rules and regulations.
It is being continuously asked if they are thinking to reinvent their financial policies pertaining to the increase in number of crypto users and worldwide rising acceptability.
The regulator seemed a little annoyed about the crypto industry’s ever-lasting request for clearer regulations.
He insists that there is nothing about a new technology that makes it non-consistent with public policies.Gensler emphasized that companies also need to stick to the rules. And, if it seems impossible or difficult, then the agency will help.
While answering certain questions asked by the media agencies and the public at large about the difference between traditional markets and crypto markets, Gensler said that traditional markets are like rent-collecting models which come under legal regulations.
The SEC Stand is Not Supported by All
In the same way, the crypto market should also be watched by law enforcers.The SEC critics have called such offers dishonest. Even the commissioner Hester Peirce, also pointed out that there is no way to register with the SEC.
The Republican lawmakers also said that this come-in and register is a willful misrepresentation of the SEC nonexistent registration process.While politicians and federal officials like
Gensler asserts that the present economic law system is enough to tackle any uncertain event relating to crypto, many European officials feel the need to put new legislation governing crypto trading.
Owing to increasing criticism of the SEC’s inability to track the flow of funds and scams happening related to the crypto world, the US leading regulator stated that there is nothing about a new technology that makes it inconsistent with public policies.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/21/gensler-announces-sec-firm-stand-as-crypto-industry-opposes/