If you remember, we had shared a brief summary of what we would experience today at the end of 2022. High-ranking SEC officials had blatantly threatened crypto companies, stating “your days are numbered, either register or perish”. Now, after finalizing all preparations, the SEC has launched a major onslaught against crypto exchanges.
What does the SEC Chairman Want?
Gensler, who believes in the philosophy of Bitcoin, thinks that all other cryptocurrencies are indirectly linked to fraud. He also believes they are unnecessary. Today, Securities and Exchange Commission Chairman Gary Gensler, following his organization’s lawsuit against Binance and Coinbase for operating unregistered securities exchanges, declared that the U.S. does not need more digital currencies.
In an interview with CNBC, Gensler dismissed allegations that his approach was muddying the legal waters on crypto, and also claimed parallels between the lawsuit he filed against Binance CEO Changpeng “CZ” Zhao and the criminal case launched against FTX’s founder Sam Bankman-Fried.
Mainstream media has often insinuated that CZ, being of Chinese origin, should be targeted. Now, the SEC is doing its duty.
Crypto Declarations
Gensler will attempt to prove that thousands of tokens traded on the two largest crypto platforms resemble investment contracts that should be registered with his institution, rather than just being a medium of exchange.
“All we need to show is that one of these is a security and they need to be properly registered,” he stated.
Appearing on CNBC’s “Squawk on the Street”, Gensler also said, “Look, we don’t need more digital currencies. We already have a digital currency. It’s called the U.S. dollar. The euro or yen, they are all digital now. We already have digital investments.”
Gensler emphasized that he is ready to work with the crypto industry. However, Coinbase has an ongoing lawsuit on this matter, having sued the SEC for not providing necessary regulatory clarity and highlighting the need for clear guidance. He stated that the same rules apply to crypto companies as well.
In his recent statements, Gensler pointed out that the biggest problem is crypto companies that “do everything” and “open positions against their investors”. Exchanges already provide custody, earn, stake, market making, trade, and many other services. These services sometimes lead to conflicts of interest.
