SEC Chair Gary Gensler Issues Warning to Crypto Companies
The chair of the United States SEC has warned crypto companies to register with the SEC to comply with regulations in the country.
In an appearance on CNBC’s Squawk Box, Gensler stated that the business models of many crypto projects were “rife with conflict” and needed to “disentangle” bundled products to protect the investing public.
"The storefronts and casinos people are investing in need to comply and disentangle bundled products. The business model is rife with conflicts," says SEC Chair @GaryGensler on #crypto. "If this field has a chance of survival, it needs laws to protect the investing public." pic.twitter.com/FGRrYE1Aov
— Squawk Box (@SquawkCNBC) February 10, 2023
Settlement with Kraken
The warning from Gensler followed the SEC’s announcement of a settlement with Kraken, in which the exchange agreed to shut down its staking services and programs for U.S. customers and pay $30 million in disgorgement, prejudgment interest, and civil penalties.
Kraken stated that it would continue to offer staking services for non-U.S. users through a separate subsidiary.
Critics of the SEC’s Actions
The SEC’s actions were criticized by many, including SEC commissioner Hester Peirce, who called them “lazy and paternalistic” and claimed that the staking program had “served people well.”
About the SEC
The SEC is a government agency responsible for enforcing federal securities laws and regulating the securities industry, including stock and options exchanges. The agency’s mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The SEC strives to promote transparency, integrity, and fairness in the financial markets and to help prevent fraud, manipulation, and other abusive practices.