In a recent CNBC interview, Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), expressed strong criticism of the cryptocurrency industry.Â
He stated that the entire business model of the crypto industry is “built on non-compliance.” Gensler’s comments come in the wake of the SEC’s lawsuit against Coinbase, the largest crypto exchange in the United States.
Gensler emphasized that the commingling of functions within crypto exchanges, such as trading and operating a hedge fund, would not be acceptable in traditional finance.
He highlighted the recent lawsuits against Coinbase and Binance, the world’s largest digital asset exchange, alleging unregistered securities sales and misuse of customer funds.
Addressing the need for digital currencies, Gensler stated that the U.S. dollar, euro, and yen already serve that purpose effectively. He argued against the creation of additional digital currencies, asserting that they are unnecessary.
Since assuming his role as SEC Chairman in 2021, Gensler has pursued an intensified crackdown on the crypto industry. The regulator’s actions have targeted major U.S. exchanges, including Kraken, Bittrex, and Coinbase, accusing them of selling unregistered securities.
The SEC’s increased scrutiny has garnered mixed reactions. Some lawmakers, primarily Republicans, have voiced concerns that the stringent regulations and lack of clarity may impede innovation in the country’s largest economy.
Representative Warren Davidson (R-OH) has even announced plans to introduce legislation aimed at removing Gensler from his position.
As the crypto industry grapples with regulatory challenges, the SEC’s actions and Gensler’s statements continue to shape the landscape of digital currencies in the United States.
Also Read: Binance & CZ Reply to the SEC Lawsuit with Strong Defense
