{"id":8509,"date":"2022-11-13T01:37:33","date_gmt":"2022-11-13T01:37:33","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=8509"},"modified":"2022-11-13T01:37:34","modified_gmt":"2022-11-13T01:37:34","slug":"sec-chair-gensler-discusses-crypto-regulation-following-ftx-collapse-says-this-field-is-significantly-non-compliant","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=8509","title":{"rendered":"SEC Chair Gensler Discusses Crypto Regulation Following FTX Collapse \u2014 Says This Field Is &#8216;Significantly Non-Compliant&#8217;"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has outlined two paths the agency is taking to regulate the crypto industry. Meanwhile, a U.S. congressman is investigating whether Gensler helped FTX CEO Sam Bankman-Fried and his bankrupt crypto exchange on legal loopholes to obtain a regulatory monopoly.<\/strong><\/p>\n<h2>SEC Chair Gensler on FTX\u2019s Undoing<\/h2>\n<p>The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, talked about crypto regulation and the undoing of cryptocurrency exchange FTX in an interview with CNBC Thursday.<\/p>\n<p>Without confirming whether the SEC is investigating FTX, the chairman explained that when crypto exchanges \u201cmix together a bunch of customer money\u201d without disclosure and \u201cleverage borrowing against it,\u201d investors get hurt.<\/p>\n<p>He was also asked about the watchdog going after Kim Kardashian which, on a relative basis, is a much smaller case than FTX. Gensler replied:<\/p>\n<p>Look, I think that investors need better protection in this space. But I would say this, this is a field that\u2019s significantly non-compliant, but it\u2019s got regulation and those regulations are often very clear, and we have multiple paths.<\/p>\n<p>\u201cOne path is working with those crypto exchanges, crypto lending platforms, and to get them properly registered and why that matters is that so the public is protected,\u201d he explained.<\/p>\n<p>Another path is enforcement, Gensler emphasized. \u201cWe\u2019ve brought, between my predecessor and the teams now at the SEC, at least 100 actions \u2026 and we\u2019ve been very clear in these various enforcement actions.\u201d He also referenced the regulator\u2019s recent win against LBRY.<\/p>\n<h2>\u2018Come in, Talk to Us\u2019<\/h2>\n<p>Gensler often said that crypto trading and lending platforms should \u201ccome in, talk to us, and get registered.\u201d<\/p>\n<p>According to his calendar, FTX CEO Sam Bankman-Fried did come in and talk to him on March 29. \u201cDo you feel like you were hoodwinked?\u201d he was asked.<\/p>\n<p>The SEC chairman replied:<\/p>\n<p>I think we\u2019ve been clear in these meetings \u2026 non-compliance is not going to work, the public is going to be hurt, but also we\u2019re going to continue on these dual paths.<\/p>\n<p>He added that if necessary, the SEC will be \u201cthe cop on the beat, going into court, putting the facts and the law in front of judges.\u201d<\/p>\n<p>\u201cIt\u2019s about the platforms or the intermediaries. This is not like the New York Stock Exchange or Nasdaq,\u201d Gensler stressed, adding that a handful of crypto lending and trading platforms \u201ccomingle\u201d assets. He opined:<\/p>\n<p>It\u2019s another toxic combination where they take people\u2019s money, they borrow against it, it\u2019s not much disclosure, and then they trade against their customers.<\/p>\n<p>The chairman added that the SEC is focusing on these platforms but \u201cBuilding the evidence, building the facts often takes time.\u201d<\/p>\n<h2>Congressman Investigating Whether Gensler Helped FTX on Legal Loopholes<\/h2>\n<p>Following Gensler\u2019s interview, Congressman Tom Emmer tweeted that his office has received reports alleging that the SEC chairman helped Bankman-Fried and FTX work on legal loopholes to obtain a regulatory monopoly. \u201cWe\u2019re looking into this,\u201d the lawmaker wrote.<\/p>\n<\/p>\n<p>Last week, four congressmen accused Gensler of \u201chypocritical mismanagement of the SEC,\u201d emphasizing that he refuses to practice what he preaches. This week, two lawmakers said they were \u201cdeeply concerned\u201d that the SEC is enacting rules too quickly, without sufficient feedback. Gensler has also been criticized for taking an enforcement-centric approach to regulating the crypto industry.<\/p>\n<p><em><strong>What do you think about the comments by SEC Chairman Gary Gensler and Congressman Tom Emmer? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons, lev radin<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/sec-chair-gensler-discusses-crypto-regulation-following-ftx-collapse-says-this-field-is-significantly-non-compliant\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has outlined two paths the agency is taking to regulate the crypto industry. Meanwhile, a U.S. congressman is investigating whether Gensler helped FTX CEO Sam Bankman-Fried and his bankrupt crypto exchange on legal loopholes to obtain a regulatory monopoly. SEC Chair Gensler on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8510,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-8509","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8509","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8509"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8509\/revisions"}],"predecessor-version":[{"id":8511,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8509\/revisions\/8511"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/8510"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}