Blockchain Association members say courts will prove SEC, Gary Gensler wrong News ▸ US ▸ Regulation
Blockchain Association members say courts will prove SEC, Gary Gensler wrong
Draft regulation could also "rein in Chair Gensler’s relentless crusade."
2 min read
Updated: Jul. 9, 2023 at 3:52 pm UTC
U.S. Securities and Exchange Commission. Remixed by CryptoSlate
Members of the Blockchain Association have commented on recent actions from the U.S. Securities and Exchange Commission (SEC).
CEO says Gensler will be proven wrong
The SEC sued Binance and Coinbase on June 5 and June 6, respectively. Blockchain Association CEO Kristin Smith commented on those events on June 6, stating:
“The SEC doesn’t make the law – it only makes accusations – and we’re confident the courts will prove [Securities and Exchange Commission] Chair [Gary] Gensler wrong in due time.”
She said that, despite Gensler’s claims, there is no regulatory clarity for the crypto industry. She also expressed support for a Republican discussion draft that could create clear regulation and “reign in Chair Gensler’s relentless crusade.” Smith said that her group will advocate for its members and fight the SEC in court.
In a separate interview with Forbes on June 7, Smith said that the SEC could take action against other companies. However, she believes the SEC’s existing action against Coinbase has already sent the “message that [Gensler] wanted to send.”
Chief Policy officer also comments
Other members of the Blockchain Association have also commented. Chief Policy Officer Jake Chervinsky said that the SEC’s description of investment contracts is so broad that “basically all luxury goods in existence,” from watches to cars, could be securities.
The SEC alleged in its case against Coinbase that the firm’s staking program and crypto listings are investment contracts. It also said that “novel investment vehicles” such as orange groves and mobile phones have been found to be investment contracts.
Chervinsky further criticized the SEC’s treatment of Coinbase’s business model and hurting those who invested in the company’s stock. He echoed Smith’s comments on the lack of clarity and the SEC’s possible loss in court.
Coinbase has not yet announced its full plans to fight the SEC. It is currently persisting with its petition for rulemaking, CLO Paul Grewal stated on June 6.
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Posted In: US, Regulation
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Zaeem, an editor fascinated by business, finance, DeFi, and cryptocurrencies, holds a business and finance degree. His 14-year career in financial journalism spans sectors like banking, finance, insurance, and tech.
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In this article
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Gary Gensler is an American government official and former investment banker who President Joseph Biden nominated to chair the U.S.