Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), has issued a stern warning to anyone involved in the cryptocurrency industry. In an interview with CNBC, Gensler emphasized the importance of conducting crypto-related activities within the boundaries of the law. He advised crypto trading platforms to earn the trust of investors by ensuring transparency and avoiding practices such as commingling functions, trading against customers, or misusing users’ assets for personal gain.
Gensler cited the collapse of crypto exchange FTX as an example and stated that the platform could potentially be revived under new leadership, as long as they fully comply with regulatory requirements. He also referenced Tom Farly, a former president of the New York Stock Exchange who recently launched his own digital asset exchange, urging individuals entering the crypto field to adhere to the law. Gensler emphasized the robustness of existing securities laws and stressed the SEC’s responsibility to enforce them. He called attention to the non-compliance of many actors in the crypto industry with international sanctions and money laundering laws, expressing concern about their presence in the markets.
The statements by SEC Chairman Gary Gensler highlight the regulatory focus on the cryptocurrency industry and the importance of operating within legal frameworks. Building investor trust and maintaining transparency are key considerations for crypto trading platforms. The enforcement of existing securities laws is seen as necessary to ensure the legitimacy of the industry. Gensler’s warnings serve as a reminder to crypto companies to prioritize compliance and avoid fraudulent or unlawful activities.
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