- The director of SEC enforcement action denies the crypto criticism.
- After SEC’s action against Coinbase and Binance, the crypto market has fallen down.
As per the Reuters, it is said the United States Securities and Exchange Commission (U.S. SEC) has refused the crypto breakdown criticism and condemned the securities laws which are breached, on Friday.
In New York, Gubir Grewal, the chief director of SEC enforcement stated that this criticism is imposed as the failure of crypto firms are scrutinized without following the regulations. He also added:
“We have worked thoughtfully and incrementally in this space.”
“Typically you’d also see compliance but we’re not seeing that in this space, so we had to change strategies.”
It is noted that the Securities Exchange Commission claimed that the scrutinized crypto firms are unregistered securities with illegal brokerage and exchanges.
Reason Behind The Criticism
Crypto companies such as Coinbase and Binance have been sued due to their activities of holding unregistered securities laws. Correspondingly, the crypto market has fallen due to SEC’s action against the crypto exchanges.
However, these firms proclaimed that these allegations are contradicting and they are not acceptable with the new rulemaking processes. Also, the crypto firms claim that the SEC sets inappropriate regulations and prefers new rulemaking policies often. Grewal said at an event,
“Even if you came up with a bespoke rule set, you have an entire industry where the ethos is built around non-compliance.”
Furthermore, the crypto firms bring forth a constraint that the SEC is becoming unwilling to cooperate with the crypto industry. Additionally, it connects that once the FTX collapse occurred, the Securities Exchange Commission kept hardening the rules and regulations for cracking the whole crypto market.
Currently, the global crypto market is increased by 2.04% compared to the last 24 hours. And, it is expected that the crypto market needs stability as the majority of crypto investors support Binance and Coinbase although it got sued by the SEC.
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