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Crypto community criticizes SEC Chair for compliance comments

TL;DR

  • Crypto community slams SEC Chair Gensler for vague compliance claims.
  • Ripple CEO calls Gensler’s comments hypocritical and questions SEC’s credibility.
  • The cryptocurrency industry seeks clear regulations amid uncertainty.

Crypto community members have responded strongly to recent comments by the Chair of the United States Securities and Exchange Commission (SEC), Gary Gensler, regarding compliance within the cryptocurrency space. 

Gensler’s remarks on social media triggered a backlash from various cryptocurrency industry figures, who argue that the SEC has failed to provide clear regulatory guidance.

Gensler’s statements on crypto compliance

On December 22, SEC Chair Gary Gensler took to Twitter to express his concerns about non-compliance in the cryptocurrency sector. He stated that this noncompliance “undermines confidence” in the space and suggested that it leaves victims of fraudulent activities with limited recourse, forcing them to “stand in line” in the courts.

In response to Gensler’s comments, cryptocurrency community members were quick to voice their opinions. One notable criticism was that the SEC has been repeatedly asked to clarify what constitutes compliance in the crypto industry but has failed to do so. 

Using X’s Community Notes feature, users fact-checked Gensler’s assertion that the SEC had offered clear guidance and found it lacking.

Billy Markus, the creator of Dogecoin, chimed in, stating that Gary Gensler had not established actual rules for the space. Markus expressed frustration by describing Gensler as “useless in every way.”

Ripple CEO’s strong response

Brad Garlinghouse, the CEO of Ripple, didn’t hold back either. He characterized Gensler’s remarks as “stunning hypocrisy” and went further, calling the SEC Chair a “political liability” whose actions have eroded the SEC’s integrity.

Coincidentally, on the same day, the SEC issued a filing in which it “deeply regrets” certain errors made during an enforcement proceeding.

Paul Grewal, Chief Legal Officer of Coinbase, pointed out the inconsistency of the SEC, expressing regret for its errors while its Chair, Gensler, publicly criticized the industry.

Grewal questioned the credibility of the SEC’s regrets in the eyes of taxpayers and judges alike. The industry has long called for regulatory clarity to foster a more secure and transparent environment. 

Companies like Coinbase have actively sought regulatory guidance from the SEC over the past few years, seeking to navigate the complex and evolving regulatory landscape. Critics argue that without clear and concise rules, it becomes challenging for businesses to operate within the boundaries of the law.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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