2023-06-16 21:10:11
© Reuters SEC Chief Defends Cryptocurrency Crackdown: ‘Ethos Is Rule Breaking’
CriptoFácil – A senior official of the United States Securities and Exchange Commission (SEC) defended this Friday (16) the regulator’s repressive actions in relation to cryptocurrencies. Furthermore, he criticized the industry for violating securities laws.
SEC Enforcement Director Gurbir Grewal made the remarks during an event held in New York at Rutgers University and Lowenstein Sandler LLP, as reported by Reuters.
According to Grewal, the increased crackdown on cryptocurrency companies comes as a response to the agency’s lack of compliance with regulations. The SEC’s foray into the crypto industry has drawn criticism from digital asset companies and advocates on Capitol Hill. Crypto companies in particular, notably Coinbase (NASDAQ:), claim that there is a lack of clearer rules.
Faced with this, and the repression of regulators, several companies in the sector are leaving the US. CoinEX and Bittrex, for example, suspended their operations in the country. Meanwhile, Crypto.com ended its institutional business in the country. Binance.US has stopped deposits in the US following the SEC action.
Director accuses crypto companies of not following rules
According to Grewal, the SEC’s approach has been cautious. However, the lack of compliance on the part of the crypto industry has required changes in strategy.
The SEC began its actions targeting initial coin sales as unregistered securities offerings. But now the regulator has broadened its focus to include cryptocurrency companies that act as unregistered exchanges and brokerages.
Companies in the cryptocurrency industry have been arguing that existing US regulations are inadequate and calling for new rules to be implemented. However, Grewal questioned the effectiveness of these new rules in cracking down on inappropriate conduct. He stated that the crypto industry has a culture that is built around non-compliance.
“Even if you create a bespoke set of rules, you have a whole industry where the ethos is built around non-compliance,” he said.
Recently, the SEC sued Binance and Coinbase, two of the largest crypto exchanges in the world, claiming violation of its rules. The SEC’s actions are part of an increasingly intense crackdown on the crypto sector.
Both Binance and Coinbase denied the allegations and accused the SEC of failing to provide clear rules for companies. Coinbase, for its part, claimed that the agency has hardened its position and shown itself less willing to work with cryptocurrency companies after the scandal involving the FTX in late 2022.
#ethos #noncompliance #rules #CriptoFácil