After being sued by Coinbase, SEC Chair Affirms Crypto Regulations in the US are clear

Liputan6.com, Jakarta SEC Chairman Gary Gensler recently issued a statement to Coinbase and other crypto exchanges. Gensler said that crypto rules are clear and must be obeyed.

In a video posted on Twitter on Thursday, April 27, 2023, Gensler said crypto exchanges should treat cryptocurrencies like securities and stop acting as if the rules were ambiguous.

Gensler titled his video, “Office Hours,” and tries to show what crypto exchanges are doing is marketing and selling securities very clearly, even if the debate on the topic has been clouded.

“The law is clear. If you are a securities exchange, clearing house, broker or dealer, you must comply, register with us, and handle conflicts of interest and disclose important information. For 90 years, these laws have helped protect investors like you,” said Gensler, quoted from CNBC, Friday (28/4/2023).

The regulator’s comments come days after crypto exchange Coinbase sued the SEC, asking that the agency be forced to publicly share its answer to a months-old petition about whether it would allow the crypto industry to be regulated using the SEC’s existing framework.

Coinbase, which received Wells’ notification in March 2023 indicating enforcement action could be expected, argues the SEC is inconsistent in how it treats cryptocurrencies and the crypto industry needs regulatory clarity.

Since January, the SEC has taken action against crypto exchanges such as Bittrex, Gemini, crypto lender Genesis, and a number of individual actors accused of manipulating crypto assets, including crypto entrepreneur Justin Sun and Terraform Labs founder Do Kwon.

Gensler said by not complying with SEC regulations, the platform lacked basic investor protection, which meant clients couldn’t access their funds in the event of a problem, including bankruptcy.