US SEC’s Gary Gensler: This Is Only Way Crypto Companies Will Survive
Kraken SEC News: The crypto market is once again, and out of nowhere, in the middle of regulatory pressure with Kraken’s settlement with the SEC. This came only days after another crypto exchange Binance temporarily suspended deposits and withdrawals in US Dollars. The move was likely triggered after Binance faced challenges facing a US based banking partner, which again is a result of regulatory pressure. In the case of Kraken, the U.S. Securities and Exchange Commission (SEC) is insisting that crypto companies can offer investment contracts but they need to disclose the transactions fully and fairly.
Also Read: “Operation Choke Point 2.0”: Is US Planning Crackdown Against Crypto Market?
Matter Of Crypto Survival
SEC Chair Gary Gensler said efforts are on to ensure the crypto companies are complying with the laws, when asked if the agency was trying hard to keep crypto away from mainstream financial system. He said the only way that crypto companies have only way to survive, which is to comply with time tested rules and laws to protect the investors. Speaking to CNBC on Friday in the backdrop of Kraken’s settlement with the SEC, Gensler said the path forward is knowing how to register their offerings. It is time these companies register like all the mainstream companies, he added.
Also Read: Coinbase Users Converts Over $5 Bn USDC To Fiat In 24Hrs, Here’s Why
Recently, Gensler had also criticized the ‘proof of reserves’ concept that crypto companies are adopting in an effort to bring more transparency. The SEC Chair said the concept was not enough to justify the existing disclosures required to safeguard investors.
Meanwhile, reacting to the Kraken settlement news, the crypto market took a sharp dip, losing some momentum gained over the last few weeks. Bitcoin (BTC) price lost the support it had at the $22,000 level with a dip of 4.06% in the last 24 hours.
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