SEC Boss Gary Gensler Issues Stark Warning to Crypto Exchanges on Compliance

Following the alarm on crypto exchanges shared by CNF earlier, we learned that SEC Chair Gary Gensler highlighted concerns ahead of a Senate hearing. The U.S. Securities and Exchange Commission (SEC) is currently engaged in legal disputes with major cryptocurrency exchanges, including Coinbase, Kraken, and Binance.

In a recent interview with CNBC on Wednesday, Gensler emphasized the SEC’s commitment to protecting the public. Stressing the need for stricter enforcement, He remarked:

This is a sector filled with so many fraudsters, scammers, and grifters,

Gensler pointed to notorious crypto figures from 2022 who are now incarcerated or facing extradition, including former FTX CEO Sam Bankman-Fried, ex-Binance CEO Changpeng Zhao, and Terra co-founder Do Kwon.

He reiterated that the rules governing the industry are clear, adding that there is no conflict between cryptocurrency and existing securities regulations. He explained,

If something is stored on a ledger, investors still require basic protections.

While many industry leaders continue to push for clearer regulations, Gensler seems to believe there is already sufficient clarity. He maintains that the securities laws, in place for over 90 years, remain effective for governing this space. According to Gensler, these long-standing laws provide the necessary framework to regulate the cryptocurrency industry, despite calls for modernization.

Mixed Reactions to SEC’s Anti-Crypto Policies on Capitol Hill

The SEC’s approach to crypto has drawn both criticism and support from lawmakers. While some express dissatisfaction with the agency’s stringent policies, others, like Senator Elizabeth Warren, support the SEC’s actions.

Recent developments, such as Ripple CEO Brad Garlinghouse’s critical comments following a legislative victory in Congress, reflect the ongoing debate over the SEC’s role in regulating the crypto industry. In addition, the XRP lawsuit appeal concluded as the SEC decides on crypto classification, as reported by CNF.

Currently, Ripple (XRP) is trading at $0.5852, having surged by 1.30% in the past day and 8.61% in the past week.