SEC Chair Promises Strict Action Against Non-Compliant Crypto Firms

According to a report, SEC Chair Gary Gensler is not happy with the attitude of companies involved in the cryptocurrency industry as they are not following the agency’s regulatory expectations. 

Additionally, the SEC chair urged cryptocurrency firms to register their corporations and engage in communication with the agency. He claims that the majority of cryptocurrency assets are unregistered securities that belong under the SEC’s jurisdiction.

Gensler stated in a tweet on December 22 that cryptocurrency platforms must abide by securities regulations due to the continued risk to investors. 

He added that the SEC would exert every effort to bring the market in line. The statement comes after the Commission’s most recent regulatory action, its lawsuit against Sam Bankman-Fried over the FTX collapse.

However, not everyone supports the SEC’s strategy for regulating cryptocurrency. It has been characterized by many in the sector as a restricted and forced strategy that will fall short of producing the desired outcomes. 

SEC Blamed for FTX Implosion

Meanwhile, the unexpected collapse of FTX has once again highlighted the necessity for crypto regulation. The way Gensler handled FTX has also attracted attention.

Congressman Pete Sessions claimed that the Securities and Exchange Commission (SEC) was “asleep at the wheel” and questioned how FTX Group and its subsidiaries met the criteria for financial and corporate control. 

Tom Emmer, an attorney who represents Minnesota’s 6th congressional district, demanded an explanation from SEC Chairman Gary Gensler for his unsuccessful “crypto information-gathering efforts.”

Additionally, Stuart Alderoty, general counsel at Ripple, condemned the financial authority for its role in the downfall of FTX. The SEC “has lost the plot line,” according to Alderoty.

Notably, a petition to remove Gensler from office for his role in the obstruction of justice over the actions of Citadel Securities received 18,873 signatures in August of this year. Despite Citadel’s reputation as a market maker with questionable practices, Gary Gensler hasn’t taken any enforcement action, the petition summary claims.