- Gary Gensler, head of the U.S.SEC has said unequivocally that the law is clear.
- It has been argued that Gensler’s approach to crypto regulation is flawed.
Brian Armstrong, CEO of Coinbase, a cryptocurrency exchange, has urged lawmakers to establish clear crypto regulations. In addition to Armstrong, many others have voiced their dissatisfaction with the ambiguity of U.S. crypto policy, claiming that it makes it impossible for businesses to operate within the law. Yet, Gary Gensler, head of the U.S. Securities and Exchange Commission (SEC), has said unequivocally that the law is clear and that most crypto tokens are securities.
Coinbase CEO stated:
“America risks losing its status as a financial hub long term, with no clear regs on crypto, and a hostile environment from regulators. Congress should act soon to pass clear legislation.”
SEC Focusing on Enforcement
He also said that the European Union (EU), the United Kingdom (UK), and Hong Kong (HK) are “leading” in the crypto space. It has been argued that Gensler’s approach to crypto regulation, which focuses on enforcement, is flawed.
The cryptocurrency exchange Kraken was fined by the securities regulator recently for its staking program. Binance USD, a stable currency, was the subject of a Wells Notice delivered to Paxos by the authorities. On Thursday, the company filed fraud charges against Terraform Labs and CEO Do Kwon.
Coinbase has often stated that its staking services do not constitute securities. As the United States is cracking down on cryptocurrencies, numerous other countries and cities are working to establish themselves as cryptocurrency hubs, such as Singapore, Hong Kong, and Busan, the second biggest city in South Korea.
After settling with the SEC and agreeing to pay $30 million, Kraken CEO Jesse Powell also urged lawmakers to adopt crypto legislation.
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