The SEC, the US Securities regulator, has turned the process into a chaotic mess. If you don’t want to do something, you can find thousands of excuses. The weather, the season, noises from outside, and many more things can be your excuse. However, the tasks you need to perform have no connection to these. The SEC is doing just that.
SEC becomes a Nightmare for Cryptocurrencies
For months, they’ve unfairly targeted the CEO of Binance exchange, suggesting racial bias due to his Chinese origin. Now, a lawsuit has been filed against Binance exchange, and serious accusations are being made. Why are lawsuits being filed against pure American companies like Coinbase? When you ask this to the SEC, they reply, “they didn’t register with our agency.”
However, there’s a problem, registering with the SEC is impossible. Companies struggle for months to respond to the demands of the SEC authorities. In the end, the response they receive is a big no. When you ask what to fix to reapply, they don’t answer.
The process doesn’t work like that for the SEC. You negotiate for months, deliver documents, etc. After months have passed, you are told that your application has not been approved. Nothing is said about what is missing or the issues you need to resolve. You need to find them. But how? This has turned into a maddening question for American crypto companies.
The SEC is basically saying, “we’re playing games with you, and we’re going to strangle crypto companies.” The situation of Coinbase and other American crypto companies resembles innocent companies entering the auctions with known owners. It doesn’t matter if their paperwork is complete, nobody cares about their offers, they lost the auction even before it started.
Robinhood is Revolting
SEC Chairman Gary Gensler has a crypto call for companies operating without the approval and supervision of the institution, and he repeats this so often it’s become an automated announcement. They just have to come and register, that’s all he keeps saying. Dan Gallagher, a former SEC commissioner who spent his career in securities and corporate law, stated that the staff seemed to want to help but actually offered no solutions.
When SEC Chairman Gensler said ‘Come and register’ in 2021, we registered. We went through a 16-month process with SEC staff to register a special purpose broker-dealer. Then in March, we were essentially told that this process is over, and we will see no fruit from this effort.
