Crypto companies would face a tougher US Securities and Exchange Commission (SEC) in 2023, according to Chairman Gary Gensler.
Gensler said the agency was tired of waiting for crypto-related firms to comply with its rule. The statement follows the latest regulatory action the Commission has taken -the SEC sued Sam Bankman-Fried over the FTX collapse.
The regulator also sued SBF’s acolytes, Gary Wang, and Caroline Ellison, for their role in FTX’s collapse. The two are cooperating with the prosecutors and have entered into a plea deal with the authorities.
SEC Gensler’s Anti-Crypto Stance
Gensler had previously described the crypto industry as the Wild West.
The SEC chair had also urged crypto companies to dialogue with the regulator and register their businesses. According to him, most crypto assets are unregistered securities that should be under the SEC’s purview.
Meanwhile, in a Dec. 22 tweet, Gensler said crypto platforms must comply with securities laws as risks to investors still persist. He added that the SEC would do all in its power to bring the industry into compliance.
However, not everyone agrees with the SEC approach to regulating crypto. Many in the industry have described it as a regulation-by-enforcement approach that will fail to achieve the desired results.
Gensler’s Crypto Approach Draws Criticism
The recent collapse of FTX has brought the need for crypto regulation to the forefront again. Gensler’s treatment of FTX has also come under the spotlight.
US lawmaker Tom Emmer has severally criticized the regulatory chief and his commission for his approach to the industry. Besides that, Ripple’s general counsel Stuart Alderoty also criticized the financial regulator for its failure in FTX’s collapse. Alderoty said, “the SEC has lost the plot line.”
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.