Gary Gensler, the acting chairman of the Securities and Exchange Commission (SEC), operating in the United States, protests against the perspective that the crypto market works differently than capital markets. Although they may run on diverse technologies, it is required to note that SEC is the official law enforcement body appointed over both markets to execute regulatory functions and serve sanctions when called out.
So, it is wrong to think either of the markets differs from the other just because they run on independent technologies. There are more similarities between them than they often show off. The most noticed likeness is subjectiveness to the same regulatory body, the Securities and Exchange Commission.
SEC Crypto Regulation
A publication in the Wall Street Journal written by Gary Gensler presents a complete overview of how crypto firms ought to be regulated along with capital asset firms. By his prescription, dissimilarity in operating technology is supposed to be considered a false ground to find a discrepancy between them. Because lately, a lot has happened between the SEC and the crypto firms that rebuffed conformity to their regulations.
Some firms have filed for bankruptcy after the security commission temporarily closed their accounts. As a result, it had a direct distressing effect on their investors whose access to their funds got withdrawn. The chairman made an example out of these firms, and then he went on to emphasize that any crypto service company whatsoever, be it an app that offers crypto products, an exchange, a Decentralize Finance (Defi) base, or even a lending platform, that refuses to operate under legalized backing will get indefinitely suspended from its activities.
Hence, he urges all unregistered platforms to desist from defaulting the SEC’s regulations and get themselves the necessary approvals they require to run untouched. Also included is that to avoid getting intercepted for tax evasion, a pre-meeting with SEC personnel over the matter would save them a lot of trouble, especially if they could see eye to eye. It will be to their advantage and that of the crypto and the capital markets.
Gary Gensler Critiqued for Harsh Approach to Crypto Regulation
Mr. Gensler got shot down in the past for his coercion of policy on exchanges and crypto operating firms. He declared that under his administration it would remain the go-to measure in addressing the situation. Because of that, he admonishes crypto corporations to fulfill all righteousness and elude possible humiliation.
Another warning signal he flashed across was concerning tokenized assets. He calls them frail, saying that Bitcoin remains the only standardized crypto class asset while the others have the nature of ordinary securities that are bound to fall through in the long run, considering his actions against crypto companies an avenue to protect potential investors from being manipulated through market volatility.