SEC Chairman Gary Gensler is certainly not having a good time with the recent boom in the crypto space. The SEC chief issued yet another stern warning to crypto exchanges and firms staying out of the regulatory purview.
Thus, he hinted that crypto firms are more likely to succeed if they submit to regulatory rules under the existing tax compliance, insider trading, and money laundering.
Gensler said that unregulated crypto markets and companies operating outside the regulatory purview “will not end well”. Gensler’s comments came on Monday, September 27, speaking at the Code Conference in Beverly Hills, California. He further added:
“There’s trading venues and lending venues where they coalesce around these, and they have not just dozens but hundreds and sometimes thousands of tokens on them. This is not going to end well if it stays outside the regulatory space.”
Calling the current crypto market a “Wild West”, the SEC chairman has warned for more regulatory oversight. Besides, SEC is not alone in its view of increasing crypto regulations. Along with the SEC, some of the investors’ groups recently advocated that the regulatory crackdown. In fact, this group has said that it is urgent for the SEC to take quick action in this regard.
Take the SEC Warnings Seriously
Although many thought Gary Gensler to be a crypto-friendly regulator, he’s been a tough nut to crack. Gensler recently hinted that the SEC will have to clean up the crypto market before it “spills” and thus called for greater investor protection measurements in place.
Crypto firms should take the SEC warning seriously as of now. Even giants like Coinbase had to buckle under the SEC pressure recently. Last week, Coinbase announced that it would suspend its USDC lending project fearing the SEC lawsuit.
We already know what’s been going between Ripple and the SEC over the last few months with dozens of court hearings so far. However, the biggest issue with the SEC has been that it hasn’t come with a “clear regulatory framework” for the crypto space. Last week, Senator Pat Toomey lashed out at the SEC while demanding “transparency and objectivity” in the regulator’s crypto vision.