Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC) is raising standards with a speech delivered before a nonprofit organization Practicing Law Institute.
In his Speech – “Kennedy and Crypto” he clearly mentioned that the SEC will use existing laws regulating the crypto ecosystem. Despite several anticipations and calls for regulatory frameworks specific to digital assets.
“Investors, issuers, and our overall economy have benefited from those securities laws and the SEC’s engagement for nearly 90 years. That oversight should not change just because the issuance and trading of certain securities are based on a new technology.”
Gensler further quoted Joseph Kennedy, First SEC Chairman, as he urges crypto and traditional finance companies to comply with securities laws.
“For those who are starting up in this space now – either from traditional finance or as crypto-native companies – work with us on compliance from the beginning. It’s far less costly to do so from the outset.
Power Grabbing or Crypto Regulations
As Joseph Kennedy put it, ‘No honest business needs to fear the SEC. “
Responding to this, Ripple general counsel Stuart Alderoty commented abruptly. He pointed out saying that the SEC is making a political move in order to grab power. Regulating crypto is kin that will surely tumble the crypto movements.
“Make no mistake, this is a political power grab (it’s not the law and it’s not good policy) and it’s at your expense.”
Trying to convince the listeners of his speech he added, “Another famous quote from Joseph Kennedy: ‘I wanted power. I thought money would give me power and so I made money, only to discover that it was politics–not money–that really gave a man power.’”
The U.S. Securities and Exchange Commission filed a lawsuit against Ripple in 2020 over claims they sold unregistered securities in the market worth billions. The ongoing war between the two entities is immense. Ripple’s lawyer Jeremy Hogan questioned the SEC on explaining which crypto assets are counted as securities.
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