SEC Chair Gensler blames crypto industry's non-compliance for enforcement actions; set to update rules

The Securities and Exchange Commission's Chair, Gary Gensler, claimed that most crypto tokens are subject to securities laws.
Gensler stated that the non-compliance of the crypto market with securities laws is the reason the market is facing problems.
The members of US House Financial Services Committee have asked the SEC to approve the spot Bitcoin ETF filings "immediately".

The Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, has repeated his view that the crypto market should not be exempted from securities laws, as according to him, the vast majority of crypto tokens likely meet the investment contract test.

Gensler made his views clear during a testimony before the United States House of Representatives Committee on Financial Services (FSC), in which he discussed the state of the crypto market along with US lawmakers.

SEC Chair attacks crypto market

The SEC Chair went on to blame the crypto industry for the enforcement actions taken by the regulatory body in the past. Gensler stated,

"Given this industry's wide-ranging non-compliance with the securities laws, it's not surprising that we've seen many problems in these markets…Thus, we have brought a number of enforcement actions—some settled, and some in litigation—to hold wrongdoers accountable and promote investor protection.

While Gensler did say, during the testimony, that the SEC had come up with new proposals for the crypto market, he did not specify any of them.

US House FSC cracks down on SEC

The testimony presented by Gensler came a day after the US House Financial Services Committee's members wrote a letter to the SEC Chair. In the letter the FSC urged the regulatory body to approve all spot Bitcoin Exchange Traded Fund (ETF) filings "immediately".

Endorsed by Representatives Mike Flood, Wiley Nickel, Tom Emmer and Richie Torres, the letter called the SEC's standards of denial of spot ETFs as “inconsistent and discriminatory". House FSC also stated that a regulated spot Bitcoin ETF would provide protection to investors as it would make BTC much safer to access and more transparent.

Like this article? Help us with some feedback by answering this survey:

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.