Gensler says SEC can consider tailoring rules for crypto industry compliance
Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said the Commission may adjust securities law to comply with cryptocurrency companies.
In an interview with Yahoo Finance On July 14, Gensler stated that the Commission has “exemplary authority” to coordinate investor protection and disclosure laws.
Gensler continued that some crypto companies did not comply with the offering of unregistered securities. However, he did not reveal the crypto company that violated this law.
Meanwhile, the SEC chair gave an example of a crypto company like BlockFi, which the Commission took action for violating securities law.
Gensler said:
It’s safe if you’re collecting money from the masses and the masses expect profits based on the efforts of that common company.
Gensler’s recent statement is one of the clearest points he made about how the SEC can work with crypto companies.
There is a way forward. I have stated to the industry, lending platform and trading platform:
Gensler compares stablecoin to poker chips
SEC Chief Gary Gensler also talked about Stablecoin and compared it to poker chips.
According to him, Congress may have to introduce a new regulatory framework “to ensure financial stability.”
In his view, stablecoin is like a money market fund because people can profit from their usage.
Terra’s UST implosion has increased discussions about the need for stablecoin regulation. Treasury Secretary Janet Yellen met with Japanese regulatory agencies to discuss how the two countries can help crack down on space.
Meanwhile, Gensler advised investors to be cautious about projects that promise exorbitant profits.
If it’s good to be true, maybe it’s … there are a lot of risks embedded in it.
Three major cryptocurrency companies, Three Arrows Capital, Voyager Digital and Celsius Network, have filed for bankruptcy because they failed to meet their obligations to creditors and users.
