Gary Gensler and the SEC Won’t Give Up – Crypto Will Be Regulated

To better protect youGary Genslerthe president of the Security and Exchange Commission (SECOND) in the United States, spoke recently on the regulation of digital assets. He repeated, for those who have not yet fully understood him, that the market for cryptocurrencies must be framed for protect American consumers. He mentioned the case of platforms, stablecoins and tokens as a whole. Last month is the pension sector who had been affected by a warning from the authorities. Direction the northeastern United States and Pennsylvania to take stock of the latest statements from the stock market watchdog » of Uncle Sam.

Cryptocurrencies, yes, but…

Gary Gensler was back home, in his foster mother – the university of his youth. the Penn Law Capital Markets Association was organized as every year within the Law University of Pennsylvania. The theme was “The Future of Cryptos and Digital Assets”and Gensler was the main speaker. This meeting took place on the afternoon of April 4th and several meeting-debates followed the presentation by the director of the SEC.

Gensler fondly recalled his early years at law school. Next, he made it clear that he was speaking in a personal context, not as a representative of the SEC. Precautions made, he conducted a load in due form vs the young ecosystem of cryptocurrencies. To do this, he took the example of advertisements for crypto platforms during the Super Bowl halftime. Chosen piece:

“This wasn’t the first time we’ve seen new innovations aired on TV’s biggest event of the year. (…) 14 internet companies advertised during the 2000 Super Bowl, most of which have now disappeared. (…) Announcements are therefore not synonymous with credibility (…) In crypto, there is a lot of innovation, but also a lot of hype. (…) As in other startup fields, many projects could fail. »

Presentation of the Conference – Source: Sarah Hammer, President of the Wharton School of Business (University of Pennsylvania)

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The case of platforms, tokens, but also stablecoins

He recalled that the missions of the SEC were to “protect investors, facilitate capital formation and maintain fair, orderly and efficient markets”. In front of his young audience, he ended his introduction with these unequivocal words:

“There is no reason to treat the cryptocurrency market differently just because different technology is being used. »

This is why, according to him, the trading platforms should be subject to the same regulatory framework as traditional stock exchanges. He then made a point of specifying that the vagueness surrounding the notion of “title or untitled » of certain assets should be cleared up once and for all. To illustrate his point and warn potential investors, he relied on the howey-test. Finally, he ended by referring to the criterion “custodian or non-custodian” platforms that also lack legal foundations.

He finally addressed the stablecoins in a 3-step tirade:

  • First, they raise considerations of public policy regarding financial stability and monetary policy;
  • Second, they ask questions about how they can potentially be used for illicit activities ;
  • Third, stablecoins generate protection issues investors

The SEC continues to blow hot and cold on the cryptocurrency industry. On the one hand, we feel the desire to take advantage of this booming market and ride the wave. On the other hand, there is this temptation to keep control over the ecosystem to “protect the consumer”. Meanwhile, we learn that 21% of Americans have already invested in crypto. It is high time to quickly choose a path, because the population has already chosen its own.

Waiting for Gary and his gang of friends at the SEC to decide, you risk letting the cryptocurrency bandwagon pass. To not miss the opportunity of a lifetime, register on Kucoin ! Unless you prefer returning steaks to McDonalds for a few more years (affiliate link)

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