• US Securities & Exchange Commission chief Gary Gensler revealed his intentions to sue bad actors in the cryptocurrency industry.
  • The SEC head highlighted investor protection as one of the primary reasons behind the move.
  • This move comes after the Biden Administration requested that crypto exchanges report transactions over $10,000 to the Internal Revenue Service.

The United States Securities & Exchange Commission (SEC) Chairman Gary Gensler stated today that the regulator is ready to take on cases involving cryptocurrencies. 

SEC ready to bring cases involving issues with crypto

At the 2021 Financial Industry Regulatory Authority (FINRA) Annual Conference, the SEC chair continued to highlight investor protection. Gensler said federal financial regulators should “be ready to bring cases” against bad actors in the cryptocurrency space. He added:

As we continue to stay abreast of those developments, the SEC and FINRA should be ready to bring cases involving issues such as crypto, cyber and fintech.

According to Gensler, the regulator aims to ensure that bad actors are not “playing with working families’ savings and that the rules are enforced aggressively and consistently.”

Gensler’s statement also comes after the Treasury’s request to report high-cost Bitcoin transactions over $10,000 to the Internal Revenue Service.

The SEC chair believes that regulations must be firmly set in place. In early May, he stated that the agency does not have jurisdiction to regulate cryptocurrencies and urged Congress to regulate digital asset exchanges.  

While the agency has the authority to regulate digital currencies that the regulator considers securities, Bitcoin and many other cryptocurrencies do not fall within that jurisdiction. Currently, there is no market regulator around crypto exchanges, which means that there is barely any protection around fraud or manipulation, Gensler highlighted. 

He further believes that this move would boost consumer confidence and protection. 

SEC proposes rules to allow crypto projects time to decentralize

Not long ago, SEC Commissioner Hester Peirce proposed a safe harbor rule for cryptocurrency projects to provide more leeway for blockchain developers. This would enable startups to issue tokens three years before registering them as securities. 

Her solution assumes that these coins would look like securities initially but may eventually evolve into something else. The proposal would allow the developers to list the tokens on exchanges to enable a boost in liquidity for the project to gradually decentralize control over the network.

Pierce clarified that an exit report must be submitted to the agency at the end of the three-year period. A third-party counsel will then review to determine whether the project is sufficiently decentralized or if it remains a security. If the project fails to prove decentralization, it must be registered with the regulator. 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP