U.S. Securities and Exchange Commission Chairman Gary Gensler has warned so-called crypto exchanges that they must follow rules.
The SEC is currently engaged in legal battles with such major exchanges as Coinbase, Kraken, and Binance.
During a Wednesday interview with CNBC, Gensler stressed that the SEC would keep protecting the investing public.
Alex Dovbnya"This is a field that is rife with fraudsters and scammers, and grifters," Gensler stressed.
The SEC boss pointed to the fact that some of the biggest crypto figures from 2022 are now either in jail or awaiting extradition. Gensler, of course, was alluding to former FTX CEO Sam Bankman-Fried, former Binance CEO Changpeng Zhao, and Terra co-founder Do Kwon. However, some powerful voices within the crypto industry have criticized Gensler for failing to prevent the FTX disaster.
The rules are clear
Gensler has also stated that there was "nothing incompatible" about the field and basic protections in the securities laws.
"If you store something on an accounting ledger…investors still need to have basic protections," he added.
While many industry leaders have been clamoring for regulatory clarity, Gensler is convinced that there is already enough regulatory clarity, arguing that the securities laws have worked for 90 years.
The SEC's anti-crypto policies have been criticized by some lawmakers from both parties. However, the agency's approach also has some proponents on Capitol Hill. Case in point: Elizabeth Warren. The progressive Democrat has been vilified within the cryptocurrency industry over her stance.
As reported by U.Today, Gensler and SEC commissioners are on track to be grilled by Congress next week.
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Tomiwabold Olajide
Denys Serhiichuk
Dan Burgin
Vladislav Sopov