• US Securities & Exchange Commission chief Gary Gensler revealed his intentions to sue bad actors in the cryptocurrency industry.
  • The SEC head highlighted investor protection as one of the primary reasons behind the move.
  • This move comes after the Biden Administration requested that crypto exchanges report transactions over $10,000 to the Internal Revenue Service.

The United States Securities & Exchange Commission (SEC) Chairman Gary Gensler stated today that the regulator is ready to take on cases involving cryptocurrencies. 

SEC ready to bring cases involving issues with crypto

At the 2021 Financial Industry Regulatory Authority (FINRA) Annual Conference, the SEC chair continued to highlight investor protection. Gensler said federal financial regulators should “be ready to bring cases” against bad actors in the cryptocurrency space. He added:

As we continue to stay abreast of those developments, the SEC and FINRA should be ready to bring cases involving issues such as crypto, cyber and fintech.

According to Gensler, the regulator aims to ensure that bad actors are not “playing with working families’ savings and that the rules are enforced aggressively and consistently.”

Gensler’s statement also comes after the Treasury’s request to report high-cost Bitcoin transactions over $10,000 to the Internal Revenue Service.

The SEC chair believes that regulations must be firmly set in place. In early May, he stated that the agency does not have jurisdiction to regulate cryptocurrencies and urged Congress to regulate digital asset exchanges.  

While the agency has the authority to regulate digital currencies that the regulator considers securities, Bitcoin and many other cryptocurrencies do not fall within that jurisdiction. Currently, there is no market regulator around crypto exchanges, which means that there is barely any protection around fraud or manipulation, Gensler highlighted. 

He further believes that this move would boost consumer confidence and protection. 

SEC proposes rules to allow crypto projects time to decentralize

Not long ago, SEC Commissioner Hester Peirce proposed a safe harbor rule for cryptocurrency projects to provide more leeway for blockchain developers. This would enable startups to issue tokens three years before registering them as securities. 

Her solution assumes that these coins would look like securities initially but may eventually evolve into something else. The proposal would allow the developers to list the tokens on exchanges to enable a boost in liquidity for the project to gradually decentralize control over the network.

Pierce clarified that an exit report must be submitted to the agency at the end of the three-year period. A third-party counsel will then review to determine whether the project is sufficiently decentralized or if it remains a security. If the project fails to prove decentralization, it must be registered with the regulator. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Can Solana price enter a 50% relief rally?

Can Solana price enter a 50% relief rally?

Solana price is in the beginnings of a quick recovery rally that could propel it back to levels that were last seen nearly two weeks ago. Two technicals back the claim for why SOL could be ready for this ascent.

More Solana News

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum price displays reasons to believe in a ‘sweep the lows’ event in the coming days. Traders should approach the smart contract blockchain with caution.

More Ethereum News

Assessing the possibility of a 40% upswing for Cardano

Assessing the possibility of a 40% upswing for Cardano

Cardano price is in a spot favorable for the bulls and short-term traders as a rally might be in the works. A minor retracement will allow interested buyers an opportunity to accumulate ADA at a discount before catalyzing an explosive uptrend.

More Cardano News

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin price is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the highier time frames suggests that the bottom is not in yet.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP