SEC: Gary Gensler Against Crypto Exchanges
Gary Genslerthe chairman of the Securities and Exchange Commission (SEC), does not seem at all willing to change his opinion regarding the regulation of crypto exchanges.
According to Gensler, crypto platforms are just one group of intermediaries required to comply with the existing law. On the other hand, some exchanges have already stated the risk of theirs out of the US market.
Full detail below.
Gary Gensler: Will the SEC Chairman’s Posture Dampen US Innovation on the Crypto Front?
As expected above, US Securities and Exchange Commission (SEC) Chairman Gary Gensler said during testimony before the House Financial Services Committee that the agency will continue to insist that crypto platforms comply strict laws imposed.
Faced with Gensler’s uncompromising approach, the committee’s chairman, Patrick McHenry, said the regulator’s aggressive approach could drive such companies away from the US and consequently hinder innovation on the crypto side.
As we know, the SEC chairman claims he has never owned digital assets, but instead classifies them as “highly speculative.” However, his position in the blockchain industry was not so drastic when he became the SEC chairman and he was smooth fascinated by the crypto sector.
In any case, the flurry of criticism against Gensler does not end there, as there has been much more in recent days from House Republicans.
These latter specifically said that the SEC’s actions against crypto exchanges have weakened, and will continue to do so, America’s position as a center for blockchain innovation.
Indeed, the chairman of the committee, Representative Patrick McHenry, stated the following:
“Your approach is driving innovation abroad and jeopardizing American competitiveness.”
McHenry, also believes that the agency should not rely on regulation for enforcement, and classifies this method as inadequate and unsustainable.
Finally, McHenry concluded:
“You’re punishing digital asset companies for allegedly not complying with the law when they don’t know it will apply to them.”
The views of SEC Chairman Gary Gensler on crypto exchanges
After widespread criticism, Gensler has been forced to refute the claim that US crypto exchanges do not know how to comply with the law.
In fact, the SEC chairman takes advantage of the regulatory framework presented many years ago and the fact that crypto platforms, as a group of intermediaries in the market, should do nothing more than follow the guidelines imposed on them. As can be seen from his statements:
“We have a whole field in the cryptocurrency industry that understands the law, and if they’re offering exchange services, broker-dealer services, clearing services for crypto-security tokens, they should comply. They have no choice. They’re generally not compliant and have to comply.”
In the face of all this, some of the most prominent crypto exchanges have not been slow to make their voices heard.
That’s how it is with Coin basewhose CEO Brian Armstrong recently stated that his platform would exit the US market if the legislation is not sufficient.
Yet Gensler remains uncompromising, continuing to claim he never owned Bitcoin or any other crypto and again emphasizes how highly speculative he believes the asset class is.
As written above, the SEC chairman was not so hostile to the blockchain industry during the first months of his election as the head of the commission. However, despite his interest in the 2021 market, today Gensler seems to have a different view:
“Although I am neutral about the technology, even fascinated, I spent three years learning it, relying on it, I am not neutral about investor protection. If someone wants to speculate, that’s their choice, but we have a role as a nation to protect these investors from fraud.”
Can Coinbase Really Leave the US Market?
As expected above, Coinbase CEO Brian Armstrong argues that crypto entities based in the US and UK may actually move to other countries if clear and appropriate legislation against the industry is not forthcoming.
As such, according to Armstrong, the US and UK governments should implement appropriate regulations for the industry to prevent discharge by local companies to other destinations. According to the statement:
“This is why we need clarity in legislation and regulation, because if the UK doesn’t have it, if the US doesn’t have it, these companies will be built in offshore havens.”
However, Coinbase’s CEO acknowledges the efforts the UK is making in a peaceful direction against crypto exchanges, unlike what is happening in America.
Therefore, when Armstrong was asked if Coinbase is really in danger of moving to another country, his response was as follows:
“Everything is on the table, including transfer or whatever else is needed. I think in a number of years, if we don’t see regulatory clarity emerge in the U.S., we may have to consider investing more in other parts of the world.”
