Gary Gensler, US SEC: This is the Only Way Crypto Companies Can Survive

Kraken SEC News – The crypto market is back, and seemingly out of nowhere, under regulatory pressure after Kraken’s settlement agreement with the SEC. This settlement was made just days after Binance, another crypto exchange, temporarily suspended withdrawals and deposits in US dollars. This was likely to have been triggered by Binance’s difficulties with a US-based banking partner. It is also a result regulatory pressure. The U.S. Securities and Exchange Commission insists that crypto companies may offer investment contracts, but they must disclose all transactions accurately and fully.
Also read: “Operation Choke Point 2.0: Is the US planning a crackdown on the Crypto Market?”


When asked if the agency was trying to keep crypto out of the mainstream financial system, Gary Gensler, SEC Chair, said that efforts are being made to ensure that crypto companies comply with the laws. He stated that crypto companies can only survive if they adhere to the laws and rules that have been tested over time. Gensler spoke to CNBC Friday, in the context of Kraken’s settlement to the SEC. He said that the only way forward is to know how to register their offerings. He said that it was time for these companies to register like the main companies.
Also read: Coinbase Users Convert Over $5 Bn USDC to Fiat in 24 Hours. Here’s why


Gensler also criticised the ‘proof-of-reserves’ concept that crypto companies are using to increase transparency. The SEC Chair stated that the concept was insufficient to justify the disclosures required to protect investors.
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The crypto market suffered a sharp decline as a result of the Kraken settlement news. It lost some momentum that it had gained in the last few weeks. Bitcoin (BTC), with a drop of 4.06% in 24 hours, lost the support at $22,000.

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