SEC Chair Calls for Crypto Industry to Embrace Regulations

Updated: 1 year

• U.S. authorities are cracking down on the crypto industry and seem ready to introduce stricter regulations against it.
• In an interview with CNBC’s Squawk Box, Gary Gensler, Chairman of the Securities And Exchange Commission (SEC), denied an ongoing attempt to crack down on crypto.
• The SEC Chair emphasized that a high number of tokens must come under their oversight by registering with the regulator, and called out crypto companies to embrace “time-tested” regulations that protect consumers.

U.S Cracking Down on Crypto Industry

U.S authorities are taking steps to introduce stricter regulations against the growing crypto industry in response to the recent bankruptcy filings and turmoil in the sector.

SEC Denies Crackdown

Gary Gensler, Chairman of the Securities And Exchange Commission (SEC) recently denied an ongoing attempt to crack down on cryptocurrency during his interview with CNBC’s Squawk Box. He stated that the SEC is using “all available tools,” including speaking with market participants, to ask them to comply with regulations.

High Number of Tokens Must be Registered

The SEC Chair believes that a high number of tokens must come under their oversight by registering with the regulator, calling out crypto companies to embrace “time-tested” regulations that protect consumers from potential risks associated with investing in cryptocurrencies.

Runway is Running Short for Crypto Companies

Gensler warned crypto companies that they have limited time left for registration before facing enforcement actions from regulators if they fail to comply with existing laws and regulations regarding cryptocurrencies trading activities in the United States.

Conclusion

It remains unclear whether or not any new laws or restrictions will be introduced by U.S authorities when it comes to regulating cryptocurrencies trading activities in America; however, this event serves as yet another reminder for companies operating within this sector to adhere strictly to existing laws and guidelines or face potential legal consequences from regulatory bodies such as the SEC if they fail do so.

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