SEC Issued an Urgent General Warning to Crypto Firms
2023.02.10 14:22
SEC Issued an Urgent General Warning to Crypto Firms
By Tiffany Smith
Budrigannews.com – Following the agency’s announcement of a settlement with crypto exchange Kraken, chair Gary Gensler of the United States Securities and Exchange Commission warned cryptocurrency businesses to “come in and follow the law.”
Gensler stated on CNBC’s “Squawk Box” on February 10 that crypto exchanges should register with the SEC to comply with US regulations, claiming that many in the industry were “choosing” not to. The chair of the SEC said that many crypto projects’ business models were “rife with conflict,” and that they needed to “disentangle” bundled products.
According to Gensler, “time-tested rules and laws to protect the investing public are the only way this field has any chance of survival and success.” Don’t take the money from your customers and use it for your own platform.
“The casinos and storefronts that people are investing in must comply with this and separate bundled products. “SEC Chair @GaryGensler on #crypto says that the business model is full of conflicts.” Legislation to safeguard investors is necessary if this field is to survive.”
Gensler issued the statement after the SEC announced that it had reached a settlement with Kraken, in which the exchange agreed to cease providing staking services and programs to customers residing in the United States, pay $30 million in disgorgement, prejudgment interest, and civil penalties, respectively. Through a separate subsidiary, Kraken said it would continue to provide staking services to users outside of the United States.
The SEC settlement has been criticized by many as regulators acting against businesses that must navigate a regulatory space without clear guidelines. Hester Peirce, the SEC commissioner, stated that the staking program had “served people well” and described the SEC’s actions as “lazy and paternalistic.”
