Gary Gensler, chairman of the US SEC, is becoming the "godfather" of encryption regulation
This article comes fromCointelgraph, Original Author: JACK SOLOWEY & JENNIFER SCHULP
Odaily Translator |
There is such a scene in the movie "The Godfather": Michael Corleone ordered to strike the hostile leader Don Cuneo, he chose to lock Don Cuneo in a revolving door before shooting. If we look at the recent US Securities and Exchange Commission (SEC) Chairman Gary Gensler’s crackdown on encryption projects, we will find that he seems to be exactly the same as Michael Corleone’s “closed doors and dogs” approach.
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"Gangster Means" by Gary Gensler
On February 9, Kraken, one of the world's largest cryptocurrency exchanges, was involved in an investigation by the US SEC into whether the exchange violated securities regulations related to issuing certain products to US customers, and then announced that it would "immediately ” ended its staking-as-a-service (staking-as-a-service) platform services to U.S. customers and will pay a $30 million fine to the SEC to resolve charges against it for providing unregistered securities.
On February 13, the stablecoin issuer Paxos will face a lawsuit from the US SEC due to BUSD-related issues. Law enforcement officers issued a "Wells notice" to Paxos to inform possible enforcement actions and stated that the US dollar stablecoin BUSD it issued is an unregistered security and plans to sue Paxos for violating investor protection laws, with possible enforcement action.
On Feb. 23, Gary Gensler discussed cryptocurrencies in an interview with New York Magazine, claiming that "everything (cryptocurrencies) except Bitcoin" falls within the remit and regulatory goals of the US SEC.
What’s really troubling is that Gary Gensler seems to be suggesting that highly decentralized cryptocurrencies — such as Ethereum — will also be classified as securities, contrary to previous regulators’ claims that decentralized software protocols are not securities Run in the opposite direction. Furthermore, even assuming that a particular cryptocurrency or service is a security, there are still registration issues — and this, in fact, is where the US SEC looks like a gangster.Under the current regulatory environment, there is no registration channel for cryptocurrency-related products in the US SEC。”
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"Dirty War" by Gary Gensler
Frankly speaking, the US SEC led by Gary Gensler is waging an unsupervised dirty war on cryptocurrencies. US law enforcement needs to defend their own supervision powers and provide cryptocurrency developers, entrepreneurs and users with a legal way to do business. Otherwise, Gary Gensler will use his power to slaughter all "encrypted family businesses". What is the difference between such law enforcement behavior and the "Godfather" gang?
The SEC’s claim that the current enforcement action “is simply enforcing existing registration and disclosure requirements for cryptographic tokens and services it considers securities” is misleading for two reasons:
First, if Gary Gensler believes that every cryptocurrency other than Bitcoin would be considered a security, then the applicability of US securities laws to related projects is at least arguable, including Kraken's staking service and Paxos' BUSD stablecoin. In the case of Kraken, the SEC claims that its staking service involves a type of security known as an investment contract, which, broadly speaking, covers investments that are expected to make a profit based on the management or entrepreneurial efforts of others. Whether Kraken's service actually falls into this category is debatable. As for Paxos, we do not yet know what type of securities the US SEC will consider to cover the BUSD stablecoin.
Second, if the US SEC requires information disclosure of products including stablecoins "for the benefit of consumers", then it must provide clear guidance, but at least so far, they have not.
