SEC Director Comments on Crypto Sector’s Non-Compliance
Gurbir Grewal, the director of the US Securities and Exchange Commission’s (SEC) enforcement division, is said to have commented that the whole crypto sector has been “constructed on the basis of not adhering to the rules”, prompting enforcement actions. At an event hosted by Lowenstein Sandler and Rutgers University Law School in New York, Grewal, as reported by Reuters on June 16, commented that the SEC had taken a ‘thoughtful and incremental’ approach to actions concerning the crypto space, yet this had not been successful in dealing with what the regulator viewed as unregistered securities offerings. Furthermore, Coinbase’s chief policy officer Faryar Shirzad was also present.
“Grewal stated that even if a custom rule set was created, there is an entire industry that is based on non-compliance. Generally, compliance would be expected, but in this situation, it was necessary to alter the approach.”
It is “impossible” for decentralized exchanges (DEXs) to register with the SEC like other exchanges, according to Coinbase’s Chief Legal Officer.
SEC and Coinbase Legal Dispute Could Impact Crypto Companies
The SEC and Coinbase have been in disagreement since March when the commission issued a Wells notice to the crypto firm. In May, Coinbase replied to its writ of mandamus, requesting the SEC to set out clear regulations for digital assets. On June 6th, the SEC filed a lawsuit against the crypto exchange, claiming that several tokens were unregistered securities.
The result of the legal proceeding may have far-reaching consequences for cryptocurrency companies that are attempting to operate lawfully in the United States. Members of the House Financial Services Committee have set a hearing for June 22 to discuss monitoring of the SEC.
Does SEC Chair Gary Gensler have the ultimate authority when it comes to cryptocurrency regulation?
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