For some time, there has been a strong tension between the SEC of the United States and the crypto exchanges. The problem stems from the fact that they do not know exactly how to register with the American regulator. This Monday, the chairman of the SEC returned to the issue of compliance for crypto companies. It was during the 2023 Atlanta Fed Financial Markets Conference. Here are the gist of Gary Gensler’s statements on crypto intermediary compliance.
Gensler urges compliance despite regulatory vagueness
A few days ago, the EMPOWR exposed the underside of a crypto scandal involving the SEC. Despite everything, the regulator maintains its crypto policy and invites intermediaries in the sector to follow it. The president of the agency declared that the latter are not compliant and constitute a source of conflict. He pointed out that their business models, built on non-compliance, often rely on the use of client funds.
In this context, Gary Gensler once again invites crypto intermediaries to approach the SEC to register. He said the agency is ready to help them come into compliance. That said, several exchanges like Coinbase have their opinion on the issue of registration with the United States SEC. Paul Grewal, chief legal officer of the crypto exchange, commented on the matter.
The high frame has explained : “We have repeatedly asked the SEC for their views on how securities laws might apply to Coinbase and our industry. To be frank, we mostly got silence as a response“.
Also, last year, Coinbase asked the SEC to draft and propose crypto rules. During the recent conference, the president of the agency returned to this request. He explained that actually the crypto rules have already been released.
The SEC Chairman’s statements come shortly after a shock to the crypto universe. Indeed, the Bittrex crypto exchange filed for bankruptcy earlier this month. This came after the SEC accused it of being an unregistered securities platform. Prior to the official bankruptcy filing, Bittrex had announced that it would cease operations in the United States due to regulatory uncertainty in the country.
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