SEC official says crypto industry “built around non-compliance”
Reportedly an American Securities body’s official explained why the SEC body initiated enforcement action against crypto firms.
The United States Securities Exchange Commission (SEC) is the top financial sector regulatory body in America. Over the past couple of years, the SEC agency tried to regulate the crypto sector under the traditional securities laws under the leadership of Gary Gensler. In the last couple of months, the SEC agency also sued high-compliance crypto companies but failed to provide any clarity on the rules & regulations.
On 16 June 2023, Gurbir Grewal, director of the United States Securities and Exchange Commission (SEC) division of enforcement, appeared in an event which was organized by law firm Lowenstein Sandler and Rutgers University Law School in New York.
During the event, Grewal reportedly said that the SEC agency initiated enforcement actions against the crypto companies on behalf of thoughtfully and incrementally efforts and tried to show that the majority of the crypto assets fall under the security asset class but this approach failed.
“Even if you came up with a bespoke rule set, you have an entire industry where the ethos is built around noncompliance,” the sec official spoke. “Typically, you’d also see compliance, but we’re not seeing that in this space, so we had to change strategies.”
SEC vs crypto
In the last week, the SEC body sued Coinbase, Binance, and BinanceUS over unregistered securities offerings & crypto staking services.
For such enforcement actions, the SEC body faced huge criticism from this sector as well also from some other lawmakers.
The latest statement from the SEC official is showing that they are aware that their approach to regulating the crypto sector is not good & fair and they need to bring some significant changes.
Bitcoin price action
Following the SEC’s suit against crypto companies, the crypto industry faced sudden panic over the last 10 days. At the time, the trade price of the majority of the crypto assets plunged by nearly 5% to 10%.
Today Bitcoin & other flagship crypto assets saw a significant increment. The current trade price of Bitcoin is $26,730 & this trade price is 4.82% high than the last 24 hours’ trade price.
Read also: Crypto firm Wyre will shut down its shop
