SEC Chairman Gary Gensler has once again attacked the cryptocurrency space with his latest statements.
Gensler defended his agency's recent sanctions against Binance and Coinbase, and gave a stern warning to other businesses operating in the space: Comply or you can expect a lawsuit.
Gensler did not hold back during a virtual presentation at the 2023 Global Stock Exchange and Fintech Conference on Thursday, demanding that crypto companies comply with existing laws.
"Cryptocurrencies Must Comply With Current Laws"
He said there was no need for an additional congressional resolution like that demanded by many in this field.
"This is a land of laws," he said, arguing for the SEC's ability to oversee the crypto market. Gensler added that crypto companies have no excuse not to operate within the rules, and dismisses claims that companies are failing to comply with existing laws.
Gensler used the following statements in his statement:
“We have issued a statement reiterating the applicability of the current rules to platforms trading crypto-asset securities, including DeFi systems, this is already law. The rules are already like that. Disliking the law is different from not liking the roles, not hearing it or not understanding it.”
Adding that there is no need for 'regulatory clarity', Gensler argued that issuers, brokerages and exchanges should know exactly how to comply.
The SEC chairman also reiterated his long-held stance that crypto markets are suitable for manipulation and fraud.
"We've seen so many companies self-destruct before and after FTX, hurting countless investors, hundreds of thousands, and sometimes millions around the world," Gensler said.
“Crypto securities markets should not be allowed to undermine the well-earned confidence of public equity markets.”
SEC Chairman Also Addresses Binance and Coinbase Lawsuits
Days after his agency announced aggressive charges against Binance and Coinbase exchanges, Gensler stood behind the lawsuits, alleging that these exchanges were openly and knowingly violating securities laws.
“Working with law enforcement in 10 states, we blame Coinbase for never properly registering the service and sale of the staking program,” Gensler said.
Citing criminal complaints released on Monday, Gensler added that Binance also faces similar registration and securities offering violations, but that the SEC also claims the exchange is shuffling client assets and manipulating markets.
Citing recent statements by Coinbase and Robinhood that they were trying to engage with the SEC but were unable to register, Gensler said the companies "wanted to hold a series of meetings with the SEC at which they were reluctant to make the changes needed to comply with securities laws."
*Not investment advice.
