The world of cryptocurrency has been a topic of debate in recent years, with the emergence of new digital assets and the rise of various crypto exchanges. The US Securities and Exchange Commission (SEC) has been playing an important role in regulating these platforms, and its Chairman, Gary Gensler, has made it clear that the agency will not change its attitude towards them anytime soon.
During testimony before the House Financial Services Committee, Gensler reaffirmed the SEC’s commitment to enforcing strict laws on local crypto platforms. He stated that exchanges “don’t have a choice” and must comply with the regulatory framework established many years ago. Gensler also emphasized that digital assets are “highly speculative” and that he has never owned any himself.
This stance has been met with criticism from some House Republicans, who argue that the SEC’s aggressive approach could drive crypto firms away from the USA and hamper innovation. Committee Chairman Rep. Patrick McHenry stated that the agency’s actions have weakened America’s status as a center for cryptocurrency innovation and that it should not rely on “regulation by enforcement.” He believes that such a method is insufficient and unsustainable.
Gensler, however, denied the claim that US crypto exchanges don’t know how to abide by the law. He believes that there is a clear regulatory framework in place and that these platforms are just intermediaries in the market that should follow the guidance provided by the SEC. He emphasized that they must come into compliance, as they are currently non-compliant.
The regulatory uncertainty in the US has already become an obstacle for some crypto organizations, with the CEO of Coinbase, Brian Armstrong, hinting that his platform might relocate if domestic watchdogs do not implement proper legislation on the industry. This highlights the urgency of the issue and the need for a clear and consistent regulatory framework.
Gary Gensler has made it clear that the SEC will not change its attitude toward crypto exchanges. He believes that they must comply with the existing regulatory framework and that there is no excuse for noncompliance. While some may argue that this approach could hinder innovation and drive firms away from the USA, Gensler’s priority is to ensure that the crypto industry is properly regulated and that investors are protected. Only time will tell whether this approach will be successful in achieving these goals.