- US SEC Chairman Gary Gensler Pushes For Charges Against Samuel Bankman-Fried To Be Dropped, As A Warning To The Crypto Community
- Gary Gensler Insists That All Cryptocurrency Exchanges and Issuers Must Comply With Securities Laws
- The Financial Regulator Announced the Settlement of Civil Fraud Charges Against Two Ex-Executives of FTX.
The The US Securities and Exchange Commission believes that the regulations already in place for cryptocurrency are adequate. John Sullivan, Chairman of the SEC, Gary Gensler, has expressed his hope that the pending criminal charges against Samuel Bankman-Fried, the founder of FTX, are dropped; to send a message to the crypto community that it needs to comply with existing securities laws.
Also read: US SEC Calls FTT Security, Sam Bankman-Fried’s Former Associates Plead Guilty
US SEC Chairman Gary Gensler Emphasizes the Need for Crypto Compliance Following FTX Exchange Collapse
The The US SEC is an independent agency of the US federal government. It stands by the thought that the regulations already in place for cryptocurrency are sufficient, however, exchanges and issuers must adhere to them. The President of the financial regulator has declared that current rules are applicable to crypto companies.
Gary Gensler, the Chairman of the US SEC, argues that the upcoming criminal charges against the FTX exchange provide a warning to the crypto community to comply with securities laws. The swift collapse of FTX has triggered a demand in Washington for new legislation to control the digital asset market.
The US SEC has settled civil fraud cases against two former executives of FTX, Gary Wang and Caroline Ellison. Wang was a co-founder of the cryptocurrency exchange, and Ellison was the CEO of the trading arm of FTX. The company used billions of its customers’ funds to finance its risky trades.
Federal prosecutors have initiated criminal fraud charges against SBF assistants in relation to their investigation into the cryptocurrency exchange. The now-bankrupt trading platform was once one of the most influential crypto platforms in the world.
The Department of Justice launched a series of investigations after the platform’s downfall. The SEC was looking into whether exchanges mixed funds with Alameda Research, a firm co-founded by SBF.
Gensler stated:
History has proven that these native tokens of crypto exchanges often fail to meet the requirements. They can be marketed to the public with the promise of a potential return, while secretly raising shares. This can lead to a misalignment of incentives and increases the risk that the token is not properly registered, does not have sufficient disclosures, and does not comply with all anti-fraud/anti-tampering provisions in securities law.
The SEC chairman proclaimed his support for legislation to regulate cryptocurrency sectors such as stablecoins. According to US securities law, tokens and brokers that deal with cryptocurrency securities are both covered.
