Why Gensler's Invite for Crypto Firms to Meet with SEC is Empty | Crypto

Why Gensler’s Invite for Crypto Firms to Meet with SEC is Empty

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-The SEC chairmans latest comments on crypto regulation failed to move the needle for industry participants after more specific parameters, signaling continued confusion and the growing likelihood of additional enforcement.

-Gary Gensler wrote in a Wall Street Journal op-ed last Friday that recent market events such as crypto lenders freezing investor accounts or going bankrupt underline the importance of bringing the weight of securities rules to crypto.

-Jackson Mueller, director of policy and government relations at blockchain technology company Securrency, said Genslers opinion piece rehashes points the SEC chair has made since taking the helm of the agency in April 2021.

-Gensler mentioned the SECs settlement with BlockFi, for example, noting the crypto companys lending product was deemed a security. BlockFi agreed in February to pay $100 million in penalties.

-More recently, the regulator charged a former Coinbase employee, along with his brother and his friend, with insider trading last month. The SEC alleged in the complaint that nine different crypto tokens are securities.

-The SEC chair said in the Wall Street Journal opinion piece that he encourages crypto lenders to come in and talk to SEC staff.

-Kristin Smith, executive director of Blockchain Association, said Gary Genslers insistence that crypto companies meet him at the table rings hollow, when previous meetings have been followed by investigations, subpoenas and lawsuit threats.

-Dallas Mavericks owner Mark Cuban also countered Genslers urging of companies to meet with the regulator in a Monday tweet.

-The Digital Commodities Consumer Protection Act, proposed earlier this month by Sens. Debbie Stabenow, D-Mich., and John Boozman, R-Ark., suggests the Commodity Futures Trading Commision (CFTC) should control crypto spot markets.

-John Collins, a partner at crypto and fintech policy firm FS Vector, said Genslers indication that the SEC would be the cop on the beat stood out.

-Though other crypto-related legislation has been proposed, such as the Responsible Financial Innovation Act introduced by Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., in June industry watchers have said they dont expect any crypto bills to pass until 2023.

 

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