On February 9, the SEC announced the shutdown of the Kraken exchange staking service. The next day, the SEC Chairman issued a warning to crypto businesses on CNBC’s “Squawk Box” show. He warned the latter against their tendency to offer services to consumers without first registering. Here is the essence of the remarks made by Gary Gensler this February 10.
Gary Gensler urges companies to follow the laws in force
Getting all crypto businesses to comply with the law is a current priority for the SEC. That’s what Gary Gensler suggested during his talk on the CNBC show. The Chairman of the United States SEC has urged companies offering crypto services to obey the laws. He suggested that he is imperative that crypto businesses come to register with the SEC. He also warned these:Don’t have your hand in the customer’s pocket, using their funds for your own platform“.
Gensler said that many crypto companies “choose» not to follow the regulations in force in the United States. He also pointed out that several crypto projects have business models “full of contradictory content“. Additionally, the Chairman of the SEC asserted : “If this field has a chance to survive and succeed, it will be through time-tested rules and laws to protect the investing public.“.
Will the SEC succeed in reassuring the community?
The SEC has been widely criticized for its incompetence in handling the crises that have rocked the crypto sector over the past year. Many have indicated that it only takes inappropriate measures that are mostly aimed at curbing the development of crypto. In this context, the recent decisions of the American regulator suggest that it try to catch up. But, they are far from being appreciated by the community.
SEC Commissioner Hester Peirce is also among those who are against the regulator’s actions. Indeed, he recently called these “lazy and paternalistic“. He added that the Kraken staking program that the SEC shut down had “well served people“.
Recent actions by the SEC show that it will increasingly crack down on crypto businesses. The president of the regulatory body confirmed this through his statements on CNBC.
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