SEC Gary Gensler Says Crypto Regulations Are Very Clear But Industry Is Non-Compliant
SEC Chair Gensler: Crypto Regulations Clear But Industry Is Non-Compliant
Earlier today, the chair of the U.S. Securities and Exchange Commission has finally stepped up and opened his voice on the current happenings surrounding the fall of the second biggest crypto exchange in the world, FTX.
Gensler On FTX’s Fall
In an interview done with CNBC, SEC chair Gary Gensler responded to questions directed at him regarding SEC’s probe on crypto exchange FTX.
For obvious reasons, Gensler explained, he won’t be able to reveal much regarding the probe on FTX and Alameda Research yet. Despite this, he summarizes the current understanding of what exactly happened to FTX.
“This is a very interconnected world in crypto with a few concentrated players in the middle and one of those concentrated players would have the toxic combinations of lack of disclosure, customer money, a lot of leverage, meaning borrowing, and then trying to invest with that. And then when markets turned on him, it appears that a lot of customers lost money and that’s where our mission is, it’s about those customers.” Gensler stated.
Related: Sam Bankman-Fried Takes Full Responsibility In FTX Collapse
Gensler On Crypto Regulations
The SEC chair then also goes on to go into depth on issues surrounding cryptocurrencies and the crypto industry as a whole.
When confronted with questions about regulators’ lack of clarity in trying to enforce crypto regulations, Gensler argued that the crypto regulations present are already there and ‘very clear’.
“I think that investors need better protection in this space. But I would say this, this is a field that’s significantly non-compliant. But it has got regulations and those regulations are often very clear.” Gensler stated.
Related: White House & Lawmakers Warn Against Crypto Following Fall Of FTX
“And we have multiple paths. One path is working with those crypto exchanges, and crypto lending platforms and to get them properly registered. And why that matters is that so the public is protected. But we have another path which is enforcement.
We’ve been very clear in these various enforcement actions. We had a big win even this week on a crypto token called LBRY where a court clearly said, ‘You’ve been on fair notice and yes, this is a security under the securities law.'”
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