Cryptocurrency Statement from the SEC Chairman!

Cryptocurrency units, and most of them think cryptos are securities and should be registered with the SEC. SEC Chairman Gary Gensler made new statements.

Gary Gensler, who attended a question-and-answer session yesterday at the 27th annual Financial Markets Conference hosted by the Atlanta Fed, cryptocurrency claimed that its markets were not generally compatible and were based on a false principle of decentralization.

Addressing many issues from cryptocurrency regulations in general to the dispute between the SEC and Coinbase, the SEC Chairman said:

“The business models in the cryptocurrency market are based on incompatibility.

Business models are often built on client funds and are fraught with conflict.

We also see that this is not so good for “financial assets” as traditional finance and the cryptocurrency industry become more interconnected. Because three of the last four banks in the US that went bankrupt were linked to crypto.”

Subject SEC-Coinbase Drawing attention to the dispute, Richmond Fed Chairman Tom Barkin pointed to Coinbase’s lawsuit to force the SEC to introduce new rules for the crypto sector, asking Gensler, “Why doesn’t the SEC want to publish rules for the crypto market?” asked.

“Dear Tom, because the rules have already been published but the crypto market is a largely inconsistent area.

The SEC has set rules on what an exchange, broker-dealer, custodian and asset adviser is, and how a securities offering is recorded.

These rules are in effect and are perfectly understandable. In this context, there is nothing that would make crypto as a new technology inconsistent with the public policies put forward by Congress.”

As is known, the SEC has sent a Wells Notice to Coinbase. In response to the SEC’s Wells Notice, Coinbase has also filed a lawsuit to force the SEC to introduce new rules for the crypto industry.