#NEAR #BTC #sol SEC Chair Gary Gensler Issues Crypto Warnings as Anticipation of Spot Bitcoin ETF Approval Soars
In a recent update, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has raised concerns about noncompliance in the cryptocurrency space. Gensler emphasized the detrimental impact of such noncompliance, stating that it undermines confidence, particularly when investors are left with limited recourse, resorting to bankruptcy courts. These warnings come amid heightened expectations for the imminent approval of spot bitcoin exchange-traded funds (ETFs).
Taking to social media platform X, Chairman Gensler posted a warning message:
"There is a lot of noncompliance in the crypto space. It undermines confidence when so many people have been hurt and all they can do is stand in line in the bankruptcy court. Further, this can make it hard for the good faith actors to compete."
Accompanying the post is a video of Gensler on CNBC, elaborating on the widespread noncompliance within the crypto industry concerning securities laws. He reiterated that these laws are in place not only to provide disclosure for investment decisions but also to safeguard against fraud and manipulation. Gensler highlighted that the crypto sector also violates regulations from other bodies such as the Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN).
Describing the crypto landscape as the "Wild West" globally, Gensler emphasized that the challenges extend beyond a few bad actors, affecting the entire industry. The post attracted a "Readers added context," noting the lack of clear SEC guidance, with companies like Coinbase seeking compliance clarity for years.
On X, reactions were mixed, with some users expressing skepticism and mocking Gensler's statements. Criticism of Gensler and the SEC's enforcement-centric approach to crypto regulation has been ongoing, with calls for his removal as chairman. Meanwhile, the SEC is currently reviewing 13 spot bitcoin ETF applications.
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