Crypto markets are “generally inadequate” and based on a “false notion” of decentralization. This was stated by the head SEC Gary Gensler during AMAAtlanta Fed sessions.
Crypto firms’ business models are based on “non-compliance with regulations,” the official said.
“As a rule, they are based on customer funds, mixing them [c активами фирм]which creates a conflict of interest, he explained.
Gensler cited as an example NYSE. The official noted that the SEC would never allow her to operate the way crypto platforms work — to act as a market maker or a hedge fund, or to borrow her own token and not publicly disclose what she does.
The head of the department drew attention to the fact that three of the four banks that have recently terminated their activities were associated with cryptocurrencies. So Gensler showed the growing interdependence of digital assets and Tradfiwhich may increase the likelihood of “fires in the financial market.”
The head of the agency questioned the need to publish clear rules for industry participants in light of the conflict between the agency and Coinbase.
“The regulation is already in place. To put it bluntly, the sphere [криптовалют] works largely with violations. Our agency has developed rules on what it means to be an exchange, broker-dealer, custodial and asset advisor, and how to register an offer of securities. There is nothing in the new technology that would contradict the policy approved by Congress, ” he explained.
According to the official, financial intermediaries and node operators must comply with the requirements if they are somehow connected with securities.
“We are ready to help with the elimination of inconsistencies. All we call for […] — register and provide full, fair and truthful disclosure. Deal with conflicts and make sure that the time-tested rules against fraud, manipulation and the like are working.Gensler emphasized.
In conclusion, the head of the SEC again recalled howie doughwhich serves to determine whether an asset matches the status of a security.
Since the beginning of 2023, the SEC has pointed to violations in the operation of Bittrex, Coinbase, Kraken, Gemini and Genesis.
In April, Gensler faced criticism over his agency’s position on digital assets during a hearing in the US House of Representatives.
Subsequently, Congressman Warren Davidson announced a bill that calls for Gensler’s resignation as chairman of the SEC.
Recall that Coinbase CEO Brian Armstrong said that the head of the department is trying not to regulate the industry, but to limit it.
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Crypto markets are “generally inadequate” and based on a “false notion” of decentralization. This was stated by the head SEC Gary Gensler during AMAAtlanta Fed sessions.
Crypto firms’ business models are based on “non-compliance with regulations,” the official said.
“As a rule, they are based on customer funds, mixing them [c активами фирм]which creates a conflict of interest, he explained.
Gensler cited as an example NYSE. The official noted that the SEC would never allow her to operate the way crypto platforms work — to act as a market maker or a hedge fund, or to borrow her own token and not publicly disclose what she does.
The head of the department drew attention to the fact that three of the four banks that have recently terminated their activities were associated with cryptocurrencies. So Gensler showed the growing interdependence of digital assets and Tradfiwhich may increase the likelihood of “fires in the financial market.”
The head of the agency questioned the need to publish clear rules for industry participants in light of the conflict between the agency and Coinbase.
“The regulation is already in place. To put it bluntly, the sphere [криптовалют] works largely with violations. Our agency has developed rules on what it means to be an exchange, broker-dealer, custodial and asset advisor, and how to register an offer of securities. There is nothing in the new technology that would contradict the policy approved by Congress, ” he explained.
According to the official, financial intermediaries and node operators must comply with the requirements if they are somehow connected with securities.
“We are ready to help with the elimination of inconsistencies. All we call for […] — register and provide full, fair and truthful disclosure. Deal with conflicts and make sure that the time-tested rules against fraud, manipulation and the like are working.Gensler emphasized.
In conclusion, the head of the SEC again recalled howie doughwhich serves to determine whether an asset matches the status of a security.
Since the beginning of 2023, the SEC has pointed to violations in the operation of Bittrex, Coinbase, Kraken, Gemini and Genesis.
In April, Gensler faced criticism over his agency’s position on digital assets during a hearing in the US House of Representatives.
Subsequently, Congressman Warren Davidson announced a bill that calls for Gensler’s resignation as chairman of the SEC.
Recall that Coinbase CEO Brian Armstrong said that the head of the department is trying not to regulate the industry, but to limit it.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
