Gensler, Coinbase, crypto and goldfish: the war of words declared

Gary Gensler

SEC Chairman Gary Gensler – Credit:

The American-style regulation of the crypto agitates the ecosystem. Coinbase promises a resistance fierce. Gary Gensler of the SEC ironic on theindustry and its attempts to getto free from the legislation on the securities.

Between the Securities and Exchange Commission and the American crypto industry, the bridges seem definitely broken. The days when the latter was delighted by the appointment of Gary Gensler, perceived by some as crypto-friendly, are long gone.

The two parties are now at loggerheads. The crypto ecosystem was thus pleased with the performance of the SEC boss before Congress, which was abused on the issue of the classification of Ethereum.

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The SEC plays the card of investor protection

As the industry gathers for the Consensus, Gary Gensler answers with irony in a video distributed on social networks. And the president of the agency made a scathing parallel with a goldfish.

For Gensler, the point is to emphasize that it is not enough to claim not to be a title to escape the regulation in force – as one would walk his dog without a leash, in violation of the law, just pretending that it is a goldfish.

“Investment contract intermediaries are required to comply with the securities laws and to register he wrote on Twitter, in a message accompanying his short vitriolic video.

Crypto’s lack of conformity, not clarity

Instead, many crypto platforms claim their investment contracts are something else. The law is concerned with what something actually is, not what you call it,” he hammers.

The publication has, unsurprisingly, provoked an avalanche of responses and criticism on Twitter. The head of the SEC believes he has the law on his side, and also Congress. To regulate, the latter has identified 30 objects subject to the legislation on securities, including investment contracts.

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The definition of these contracts would fit perfectly with tokens, suggests Gensler. Intermediaries involved in trading these contracts are required to register. And the crypto platforms? They pretend to be goldfish, according to him.

Coinbase promises to fight back hard

Gensler are thus trying to rally investors, believing that this lack of compliance by crypto players deprives them of basic protections.

Crypto markets suffer from a lack of regulatory compliance. It’s not a lack of legal clarity,” he says.

Remotely, from ConsensusCoinbase responds indirectly by saying that the SEC’s policy endangers its own reputation. The exchange also criticizes it for to act without legal basis.

We do not look forward to litigation with the SEC, but we will vigorously defend ourselves.” promises its legal director, Paul Grewal.

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