U.Today - U.S. Securities and Exchange Chair Chair Gary Gensler has that the cryptocurrency industry continues to suffer from noncompliance with US rules.
Speaking at the 2023 Securities Enforcement Forum in Washington, Gensler expressed his concern over the decentralized nature of the industry and emphasized that crypto firms are not exempt from traditional financial regulations.
Gensler's tough stance on crypto
During his remarks, delved into the history of securities laws, pointing out that Congress's definition of a security included various items, among them the term "investment contract."boss stated that there's no reason to believe that crypto asset securities markets' investors and issuers deserve any less protection than traditional finance entities.
Pointing to the economic realities of the industry, he referred to the famous Howey decision, suggesting that a large majority of crypto assets likely fall under the definition of an "investment contract" and thus are subject to securities laws.
Gensler did not mince words about the industry's problems, likening it to the pre-regulation era of the 1920s and pointing out widespread issues such as fraud, scams, bankruptcies, and .
Optimism from a former SEC boss
In contrast, former SEC Chair Jay Clayton a more optimistic view on the crypto landscape. In an interview with CNBC's "Last Call", Clayton shared his belief that the approval of a Bitcoin ETF (TSX:EBIT) is "inevitable."His confidence stems from the resolution of previous regulatory concerns that had plagued the cryptocurrency. Clayton detailed the challenges that once stood in the way of a Bitcoin ETF's approval, such as wash trading and a lack of high-quality data.
Referencing a 2019 report by Bitwise Asset Management, Clayton highlighted how this report had indicated a significant volume of possibly fake Bitcoin trading on unregulated exchanges.
However, with many of these concerns now addressed to the satisfaction of regulators and sophisticated parties, Clayton foresees a bright future for the approval of a Bitcoin ETF.