US SEC Dodging Crypto Laws; Will Congress Step In?
Crypto News: The Global digital asset industry is trading under increased volatility amid the lack of regulatory clarity. While major Financial watchdogs are trying to form sets of rules to guide the new evolving industry, the U.S. Securities and Exchange Commission (SEC) going hard on the crypto related firms.
Crypto Market Debacle
Caitlin Long, CEO of Custodia Bank in a long post made some big revelations about the crypto debacle. She mentioned that she handed over several pieces of evidence to law enforcement regarding the probable crimes committed by crypto fraud. This includes the company that imploded and stuck millions of customers with losses.
She added that they went on to warn bank regulators of mounting bank run risks. While Caitlin Long questioned how many correctly saw the crypto lender implosion and warned regulators of impending bank runs.
As per Long, Custodia tried to become federally regulated. Meanwhile, Custodia was denied and now disparaged for revealing the truth. Read More Crypto News Here…
US SEC Ignoring Complaints
Jesse Powell, Co-Founder, and CEO of Kraken Exchange, which recently landed under the scrutiny of the US SEC, made comments about Custodia Bank’s CEO claims. He stated that it is infuriating to point out massive red flags about illicit activities regulators but they decide to ignore them.
He added that financial watchdogs make arguments like they are offshore and it’s complicated for years.
However, Attorney James Deaton, fighting for the XRP holders in the US SEC vs Ripple Lawsuit, added that US Congress isn’t going to step in anytime soon. He mentioned that Senate isn’t bringing the US SEC chair, Gary Gensler, in front of the Banking Committee till September.
Experts suggest that it will be hard for the crypto industry to escape securities laws if Congress doesn’t step in.
Read More: US Congress To Act Soon As Banks Isolate Binance?
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