SEC's Gensler says 'the law is clear' for crypto exchanges and that they must comply with regulators (2024)

FAQs

Does the SEC have authority to regulate cryptocurrency? ›

Securities and Exchange Commission (SEC): The SEC oversees the issuance and sale of securities, including digital assets that meet the definition of securities. This means cryptocurrencies that meet the criteria to be considered securities must be registered with the SEC and comply with its regulations.

And yet, Gensler has taken the public position that no ambiguity exists at all: crypto platforms are, in effect, securities exchanges, and their activity falls under the sole purview of the SEC. According to Gensler, “Crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity.”

Gensler replied by pointing out that bitcoin has “the leading market share in ransomware, and that's publicly known,” adding: “It's the token of choice for ransomware.”

Investors need to be wary of claims that “you always retain ownership of your crypto assets” and “you can withdraw your assets whenever you like.” lack of investor protections due to crypto asset securities entities not acting in compliance with applicable law.

Who Is the Crypto Regulator? In the U.S., who regulates crypto depends on how and where it is used. The Securities and Exchange Commission, the Chicago Mercantile Exchange, the Commodity Futures Trading Commission, and the Financial Industry Regulatory Authority are all involved in some regard.

The U.S. Securities and Exchange Commission takes the position that nearly all cryptocurrencies are securities, with bitcoin the only known exception. The classification of cryptocurrencies as securities has significant implications for their regulation.

Gensler's crypto-skepticism looked somewhat warranted after the high-profile collapse of exchange FTX, whose founder Sam Bankman-Fried looted some $8 billion in customer funds, eroding trust in the market. But the trouble with Gensler's approach is that he overstepped his turf without a legislative mandate.

SEC Chair Gensler: Crypto is a field 'that's been rife with fraud and manipulation'

CRYPTO software firm Consensys sued the US Securities and Exchange Commission (SEC) in an effort to fend off regulation of the Ethereum blockchain and push back against what it called the agency's “campaign to seize control over the future of cryptocurrency”.

Buffett's Take on Bitcoin

He described Bitcoin as “probably rat poison squared” back in 2018. “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffett said in 2018. And his stance hasn't wavered since.

What do billionaires think of bitcoin? ›

In 2018, Carl Icahn said that bitcoin and other cryptocurrencies are "ridiculous." In 2018, the billionaire activist investor told CNBC that he found bitcoin and other cryptocurrencies "ridiculous." "I don't like the cryptocurrencies only because, maybe I don't understand them," he said, according to CNBC.

Ethereum (ETH) Price Prediction 2030

According to your price prediction input for Ethereum, the value of ETH may increase by +5% and reach $ 4,306.32 by 2030.

The Securities and Exchange Commission filed an action against BitConnect, an online crypto lending platform, its founder Satish Kumbhani, and its top U.S. promoter and his affiliated company, alleging that they defrauded retail investors out of $2 billion through a global fraudulent and unregistered offering of ...

Ethereum is the second-largest blockchain by value ($414 billion at today's prices), and the home of most of the digital asset industry's most used tools — classifying ETH as a security would likely cause chaos. With a move this big, it is entirely unpredictable where the cards will ultimately fall.

Classifying crypto

Critics, however, see crypto assets as not merely inherently worthless but a front for crime, scams, and gambling. They also point to their dizzying volatility. Bitcoin, for instance, soared from $200 a decade ago to nearly $70,000 in 2021 before plunging to around $29,000 today.

The U.S. Securities and Exchange Commission, or SEC, regulates the offer and sale of all securities, including those offered and sold by private companies.

The U.S. Securities and Exchange Commission is looking to impose its steepest fine yet on a cryptocurrency project, a $5.3 billion penalty for Do Kwon and Terraform Labs, the man and company behind the fatally flawed algorithmic stablecoin that jumpstarted a multi-billion-dollar, industry-wide contagion event when it ...

The Securities and Exchange Commission is waging an energetic legal campaign to classify Ethereum, the second-most popular cryptocurrency, as a security, according to U.S. companies that have received subpoenas related to an investigation.