SEC’s Gary Gensler says crypto-currency companies must fold or disappear!

The crypto-currency market is once again, and out of nowhere, in the middle of regulatory pressure with Kraken’s settlement with the SEC. This came just days after another crypto exchange Binance temporarily suspended deposits and withdrawals in US dollars.

The move was likely triggered after Binance faced challenges against a U.S.-based banking partner, again a result of regulatory pressure. In the case of Kraken, the U.S. Securities and Exchange Commission (SEC) insists that crypto-currency companies can offer investment contracts, but that they must disclose transactions fully and fairly.

A matter of survival for crypto-currencies

SEC Chairman Gary Gensler said that efforts are being made to ensure that crypto-currency companies are complying with the laws, when asked if the agency is working to keep crypto-currencies out of the traditional financial system. He said the only way for crypto-currency companies to survive is to comply with proven rules and laws to protect investors. S’addressing CNBC On Friday, in the context of Kraken’s deal with the SEC, Gary Gensler said the way forward is how to register their offerings. It’s time for these companies to register like all conventional businesses, he said.

“The storefronts and casinos people are investing in need to comply and disentangle bundled products. The business model is rife with conflicts,” says SEC Chair @GaryGensler on #crypto. “If this field has a chance of survival, it needs laws to protect the investing public.” pic.twitter.com/FGRrYE1Aov

Squawk Box (@SquawkCNBC) February 10, 2023

Recently, Gary Gensler has also criticized the concept of “evidence of reservations“that crypto-currency companies are adopting in an effort to provide more transparency. The SEC chairman said that this concept was not sufficient to justify the existing disclosures required to protect investors.

Meanwhile, in reaction to the news about the Kraken settlement, the crypto-currency market has seen a sharp decline, losing some of the momentum gained in recent weeks. The price of bitcoin (BTC) lost the support it had at the $22,000 level with a 4.06% plunge in the last 24 hours.