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SEC Head Gensler Discusses Crypto Regulation After FTX Collapse – Says This Field Is ‘Bigly Incompatible’ – Bitcoin News Regulatory

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The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has outlined two paths the agency is taking to regulate the cryptocurrency industry. Meanwhile, a US congressman is investigating whether Gensler helped FTX CEO Sam Bankman-Fried and a bankrupt cryptocurrency exchange find legal loopholes to obtain a regulatory monopoly.

SEC chief Gensler on rolling back FTX

The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, spoke about crypto regulation and the de-trading of cryptocurrency FTX in an interview with CNBC Thursday.

Without confirming whether the Securities and Exchange Commission (SEC) Investigation The head of FTX explained that when crypto exchanges “mix a bunch of client funds together” without disclosing and “borrowing against them,” investors get hurt.

He was also asked about the guard sergeant who is being pursued Kim kardashian Which, on a relative basis, is a much smaller case than FTX. Gensler replied:

Look, I think investors need better protection in this area. But I can say this, this is a hugely incompatible field, but it has regulation and these regulations are often very clear, and we have multiple paths.

“One of the paths is to work with those crypto exchanges and crypto-lending platforms and get them properly registered and why this is important is to protect the public,” he explained.

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The other path, Gensler emphasized, is implementation. “We’ve brought in, between my predecessor and the teams now in the SEC, at least 100… and we’ve been very clear about these various enforcement actions.” As indicated by the organizer last win against LBRY.

Come talk to us

Gensler often said that cryptocurrency trading and lending platforms should “come in, talk to us, and sign up.”

According to his calendar, FTX CEO Sam Bankman-Fried attended and spoke to him on March 29. “Do you feel like you’ve been cheated?” asked.

The head of the Supreme Education Council replied:

I think we’ve been clear in these meetings… Non-compliance is not going to work, and the public will be hurt, but we’re also going to continue on these dual tracks.

He added that if necessary, the SEC would be “the cop who gets along, goes to court, and presents the facts and the law before the judges.”

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“It has to do with platforms or brokers. This is not like the NYSE or Nasdaq,” Gensler emphasized, adding that a handful of crypto lending and trading platforms “pool” assets. He said:

It’s another toxic combination where they take people’s money, borrow against it, not much disclosure, and then trade against their clients.

The chairman added that the SEC is focused on these platforms, but that “building the evidence, building the facts often takes time.”

Congressman investigates whether Gensler aided FTX in legal loopholes

After Gensler’s interview, Congressman Tom Emer tweeted that his office had received reports alleging that the SEC chief had helped Bankman-Fried and FTX work through legal loopholes to obtain a regulatory monopoly. “We are looking into this,” the legislator wrote.

SEC chief Gensler discusses crypto regulation after FTX collapse - says it's 'toxic mix'

Last week, four members of Congress accused Gensler of “hypocrisy.” bad management of the SEC,” asserting that he refuses to exercise his advocacy. This week, two lawmakers said they were “extremely concerned” that the SEC would enact rules Very fastWithout enough notes. Gensler has also been criticized for taking an enforcement-focused approach to regulating the crypto industry.

What do you think of the comments of Securities and Exchange Commission Chairman Gary Gensler and Congressman Tom Emer? Let us know in the comments section below.

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Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

photo credits: Shutterstock, Pixabay, Wiki Commons, Liv Radin

disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com It does not provide investment, tax, legal or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


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Cryptocurrency

A Chinese court says NFTs are virtual property protected by law

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A Chinese court in Hangzhou said that a non-fungible token (NFTGroups are virtual online property that must be protected by Chinese law.

November 29 Article Posted by Hangzhou Internet Court – A specialized Internet court – subscriber By crypto-blogger Wu Blockchain on Dec. 5 reveals the language of choice for NFTs after the country started to Crackdown on cryptocurrency In 2021, that leaves NFTs in a legal gray area.

The translated article says that NFTs “have the properties of a property rights object such as value, scarcity, controllability, and tradability” and “belong to the virtual property of the network” that “must be protected by the laws of our country.”

The court decided that it was necessary to “confirm the legal features of the digital NFT pool” of the case, and admitted that “currently Chinese laws do not clearly provide” for the “legal features of digital NFT pools.”

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The court order was introduced in a case where an unnamed tech platform user sued the company for refusing to complete a sale and rescinding its purchase of NFT from a “quick sale” because the user provided a name and phone number that allegedly did not match their information.

“NFTs intensify the creator’s original expression of art and have the value of related intellectual property rights,” the court said. She added that NFTs are “unique digital assets formed on the blockchain based on the mechanism of trust and consensus between blockchain nodes.”

For this reason, the court said that “digital NFT pools belong to the category of virtual property” and the transaction in the legal case is seen as “the sale of digital goods through [the] The Internet “to be treated as an electronic business” and regulated by the “Electronic Commerce Law”.

This comes after the Shanghai Higher People’s Court issued a document in May that stated that bitcoin (BTC) similarly Subject to copyright laws and regulations despite the state’s ban on cryptocurrency.

Related: Can Hong Kong really become China’s proxy in crypto?

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With encryption banned, China has worked on it Separate NFTs from cryptography Through a government-backed blockchain project to support the deployment of non-crypto NFTs paid with fiat money.

The government remains vigilant to ensure its residents resist “NFT speculation” as described in a joint statement in April between the China Banking Association, the China Internet Finance Association and the China Securities Association. Public warned About the “hidden risks” of investing in NFTs.

China is not the only jurisdiction to place NFTs under property laws. A Singaporean High Court judge relied on existing property laws in the October case NFTs are likened to physical possessions Like a fine watch or fine wine he says “NFTs have emerged as a highly sought after collector’s tool.”