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Tuesday, December 06, 2022

US SEC Chairman Reveals Crypto Compliance Matters to Legal Experts

US Securities and Exchange Commission Chairman Gary Gensler cited major enforcement actions against crypto firms as part of the “economic realities” of securities regulation.

In a speech I wrote for the Practical Law Institute on Securities Regulation on November 2, Gensler used examples from the SEC’s application against crypto lending firm BlockFi and a former Coinbase employee to justify the agency’s actions on violations of US securities laws., Under Gensler, the SEC will take an “same-as-is” approach to enforcement actions, regardless of the form of securities, funds or investors.

“When BlockFi failed to record the offering and sale of a crypto lending product, and made materially false and misleading statements about those securities, we charged them,” Gensler said. “When a former Coinbase manager and others allegedly misused sensitive information to purchase crypto asset securities, we charged them.”

According to the SEC’s chairman, the commission’s enforcement staff included “public servants” and “police on duty” who “marred public enthusiasm with exceptional ability.” The SEC has filed more than 700 enforcement actions against the companies through September 30, resulting in civil penalties of approximately $4 billion out of $6.4 billion derived from judgments and orders.

“Fraud is fraud, regardless of the type of investors you defrauded and the type of securities used in the fraud.”

However, Gensler reiterated his “come and talk to us” message to companies that offer financial products, giving them the opportunity to “cooperate with the investigation.” [de la SEC]more solutions [su] misconduct.” The SEC’s chairman suggested that enforcement against crypto firms would still remain within the commission’s purview in 2023 in his May budget request.

Many inside and outside the cryptocurrency space have criticized the SEC for adopting a “regulation by application” approach in its cases against crypto companies.Take, for example, the labeling of nine tokens as “crypto asset securities” in a July lawsuit against a former Coinbase product manager.

The outcome of the 2022 midterm elections in the United States—either in a lame-duck session of Congress or beginning in January 2023—could affect whether the Futures Trading Commission will consider a proposed bill on the roles of commodities and overseeing cryptocurrencies. is approved by the SEC.

the explanation: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information provided here should not be construed as financial advice or investment recommendation. All investment and commercial activities involve risk and it is the responsibility of each individual to do their due research before making an investment decision.

Investing in crypto assets is not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The offering of services or products is not targeted or accessible to investors in Spain.

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