- Recent actions by the SEC have raised regulatory concerns.
- Gensler’s comments highlighted the growing uncertainty in the cryptocurrency space.
It is becoming increasingly clear that the SEC is preparing to tighten regulations regarding cryptocurrencies.
Legal disputes with numerous crypto companies, from Kraken to Consensus and most recently Robinhood, highlight this trend. But don’t just rely on AMBCrypto’s point of view – see for yourself.
SEC Chairman’s Bold Step
SEC Chairman Gary Gensler recently expressed frustration at the “overrepresentation” of inquiries related to cryptocurrencies compared to traditional finance.
Speaking on “Squawk Box”, he highlighted the huge number of questions he receives about cryptocurrencies. He said,
“Cryptocurrencies make up a small part of our overall markets. But this is a huge part of the scams, scams and problems in the markets.”
Additionally, Gensler’s comparison between the massive $110 trillion capital market regulated by the SEC and the relatively smaller $2.4 trillion cryptocurrency market highlights important issues.
Ignorance is good! This?
Moreover, this is not the first time that Chairman Gensler has tried to avoid issues related to cryptocurrencies. In a separate interview with CNBC on February 14, he avoided such questions and said:
“You have a full-fledged central bank and support for one currency, usually by economic region, which is not the case with Bitcoin.”
He even criticized Bitcoin (BTC), saying:
“Bitcoin has a leading share of the ransomware market, and this is common knowledge. This is the token chosen by the ransomware.”
All these cases further confirm that the SEC may be trying to take a tougher approach to cryptocurrencies. Perhaps this is why Jake Czerwinski, Option’s chief lawyer, suggested on a recent episode of Unchained:
“I think it’s really time for Congress to step in and decide what the law should be, rather than leaving us all in a fog of regulatory uncertainty.”
Additionally, when President Gensler was pressed about Wells’ SEC notice to Robinhood accusing its crypto services of violating securities laws, he said:
“I can’t talk to any company.”
In addition, he emphasized the lack of necessary information for cryptocurrency investors and added:
“Many of these tokens are securities under the laws of the land as interpreted by the U.S. Supreme Court.”
Is the SEC going too far?
In response to this Pablo GrewalCoinbase CLO reached out to X (formerly Twitter) and noted:
“Please stop misleading the market: tokens are NOT securities. Despite his accusations, his own lawyers admitted this in court.”
Ultimately, these trades paint a discouraging picture for the SEC. Consequently, as events unfold, people want to know who the SEC’s next target will be.
This is an automatic translation of our English version.