SEC Chairman Gary Gensler, who does not approach cryptocurrencies positively and thinks that most cryptos are securities and should be registered with the SEC, made new statements.
Gary Gensler, who attended a question-and-answer session yesterday at the 27th annual Financial Markets Conference held by the Atlanta Fed, claimed that crypto markets are generally not compliant and are based on a false principle of decentralization.
Addressing many issues from cryptocurrency regulations in general to the dispute between the SEC and Coinbase, the SEC Chairman said:
“The business models in the cryptocurrency market are based on incompatibility.
Business models are often built on client funds and are fraught with conflict.
We also see that this is not so good for "financial assets" as traditional finance and the cryptocurrency industry become more interconnected. Because three of the last four bankrupt banks in the US had a connection to crypto."
Citing the SEC-Coinbase dispute, Richmond Fed Chairman Tom Barkin pointed to Coinbase's lawsuit to force the SEC to introduce new rules for the crypto industry, and asked Gensler, "Why doesn't the SEC want to publish rules for the crypto market?" asked.
“Dear Tom, because the rules have already been published but the crypto market is a largely inconsistent area.
The SEC has set rules on what an exchange, broker-dealer, custodian and asset adviser is, and how a securities offering is recorded.
These rules are in effect and are perfectly understandable. In this context, there is nothing that would make crypto as a new technology inconsistent with the public policies put forward by Congress."
As is known, the SEC has sent a Wells Notice to Coinbase. In response to the SEC's Wells Notice, Coinbase has also filed a lawsuit to force the SEC to introduce new rules for the crypto industry.