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SEC Chair Gary Gensler Says Current Crypto Guidance is Fine 

Bitcoins on top of hundred dollar bills.
Photo by David McBee on Pexels.
The SEC Is Arbitrarily Cracking Down On Crypto

In a recent speech, Securities Exchange Commission Chairman Gary Gensler said current crypto “guidance” under SEC jurisdiction is fine. The remarks come amid reports that the United States Treasury will push for stricter crypto regulation. Gensler’s been the target of recent backlash for his agency’s handling of digital currency. Here’s what you need to know about SEC Chairman Gary Gensler’s recent speech on crypto to the Practicing Law Institute.

Gary Gensler says SEC crypto guidance is fine

“Nothing about the crypto market is incompatible with the securities laws,” said Gensler. “Investor protection is just as relevant, regardless of underlying technologies.” Since the SEC established the Crypto Assets and Cyber Crime Unit, 90% of their lawsuits have settled out of court

In his speech, Gensler targeted DeFi exchanges such as Coinbase and Uniswap. Concurrently, he said they should consider them securities brokers and, as such, should register with the SEC. Additionally, the agency is currently suing Ripple Labs. They allege the company offered XRP as an unregistered security. 

Gensler reiterated his claims that the SEC will serve as “a cop on the beat” to protect investors. However, his detractors, including billionaire Mark Cuban, say that his agency’s crypto regulations are unclear

Protection for investors with crypto tied up in bankrupt exchanges?

Gensler briefly mentioned the risks of DeFi exchanges in his speech. Additionally, as crypto winter claims victims, investors have had their assets frozen. “There’s basic protections in our securities law that guard against that,” he said. “If you’re investing in any one of these […] platforms, you’re not getting those basic protections insuring against fraud, manipulation, what’s called front-running.” 

Key takeaways

Gensler believes the Securities Exchange Commission should have the most jurisdiction over crypto. However, it seems the Commodity Futures Trading Commission (CFTC) is the more popular agency with the US Treasury. Gensler said that Bitcoin should fall under the CFTC’s jurisdiction. However, the rest of the digital currency sector should fall into SEC territory. 

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