Regulators around the world are desperate to prevent a meltdown such as the FTX bankruptcy from happening again. To do this, they are convinced that it is high time to strengthen the protection measures for crypto investors. In this sense, here is what the SEC intends to do.
The SEC won’t let any violations pass
With all the malfeasance witnessed lately in the crypto industry, regulators are on high alert. Their motto today is: stricter regulation of cryptos. Indeed, global regulators believe that only a tightening of the industry control system will prevent its excesses.
In this context, on December 22, in a tweetWatcher Guru said, “ SEC Chairman Gensler Says Crypto Crackdown Has Just Begun “. It appears that Gary Gensler made this revelation this Thursday, during an interview. Gensler’s comments suggest that the US SEC is ready to crack down hard on crypto businesses.
The Securities and Exchange Commission will probably remain on alert throughout the next year, watching for the slightest violation. Gensler made it clear that the regulator is losing patience as crypto exchanges violate existing rules.
He emphasized: The track shortens to start following the rules and checking in with the agency “. Note that the chairman of the SEC did not want to give details on what the regulator intends to do.
Gensler Criticizes Reserve Evidence
During his interview, the chairman of the SEC criticized the reservation evidence. He indicated that they do not give complete information on the assets and liabilities of crypto companies. According to him, they do not meet the requirements of segregation relating to customer funds, as required by law.
Note that the latter is securities legislation. Furthermore, Gary Gensler strongly criticized SBF and his colleagues Caroline Ellison and Gary Wang. He argues that they defrauded investors and misrepresented FTX to everyone.
The collapse of FTX has made regulators tougher and investors more wary. But, while the latter hoped that justice would be done, we learn of the release of the former CEO of FTX. Indeed, SBF was released after posting $250 million bail.
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