In a video recently posted on Twitter, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler issued a stern warning to crypto exchanges, urging them to consider cryptocurrencies like securities and abide by the law.
#SEC chairman #garrykinsler warn #cryptocurrency Legally Compliant Exchange https://t.co/a84zdqhZdm
— Kyptos (@azcoinnews) April 28, 2023
Gensler emphasizes that the rules are clear and must be followed:
“If you are a stock exchange, clearing house, broker or dealer, you must comply and register with the SEC.”
Gensler’s comments come amid Coinbase’s lawsuit against the SEC. The exchange is seeking regulatory clarification from the SEC on the crypto industry after the agency remained silent on a petition filed several months ago asking whether the current regulatory framework applies to the industry.
The SEC chairman also emphasized the importance of addressing conflicts of interest and disclosing required information, saying, “For 90 years, these laws have helped protect investors like you.” Gansler added that failure to comply with SEC rules would Leaving customers vulnerable and having no basic investor protections, leaving them without access to funds should something go wrong or even go bankrupt.
The SEC has been increasingly active in regulating the crypto industry, and Gensler said he believes the agency has broad powers in this area. He also urged Congress to pass legislation that would give the SEC more tools to police the market.
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according to Kyptos