Attorney John Deaton addressed the importance of accountability within regulatory bodies, emphasizing the need to hold both current and previous figures responsible, such as Gary Gensler and Jay Clayton, to maintain fairness and consistency in regulatory actions, particularly in relation to the "Safe Harbor" proposal for cryptocurrencies. Deaton also discussed the complexities of the Ripple legal case and the potential influence it may have on the SEC's approach to other cryptocurrencies, highlighting the urgency of regulatory clarity in order to prevent financial harm in the industry.
Despite recent losses in court, SEC Chair Gary Gensler remains firm in his belief that his agency should regulate cryptocurrencies as securities, stating that most crypto assets meet the Howey Test and should comply with securities laws. The SEC's defeats in cases against Ripple and Grayscale have not deterred Gensler's stance, and he plans to convey this to lawmakers during a Senate Banking Committee hearing.
Summary: The United States SEC's Crypto Enforcement Chief, David Hirsch, has warned that more punishment and charges will be brought against crypto exchanges and De-Fi projects that do not comply with the law, targeting not just the top players but the entire industry. The SEC will continue conducting investigations and taking action in the space.
Institutional involvement in the crypto industry provides regulatory certainty and clarity, forcing regulators to address taxation, compliance, and reporting challenges, benefiting the entire industry and legitimizing digital assets.
The article argues that the SEC and Chairman Gensler's attempts to regulate digital assets are misguided and lack understanding of their potential, and advocates for Congress to prevent these overbearing regulations in order to allow the industry to thrive and contribute to the global economy.
Venture capital funds are showing reduced interest in crypto, with investments reaching their lowest levels in over a year, but there are still crypto-native investors actively deploying capital and showing faith in the industry. The overall downturn in the market and regulatory uncertainty are contributing factors, pushing investors to conduct thorough due diligence and prioritize projects with tangible credibility and mainstream adoption potential.
The US Oversight and Accountability Committee is frustrated with SEC Chair Gary Gensler for not disclosing documents related to the SEC's involvement in European social engineering initiatives, amid growing concerns over his cautious stance towards cryptocurrencies and his intensified regulatory scrutiny of the industry. Meanwhile, the macroeconomic landscape is focused on relaxing financial conditions, potentially leading to significant developments in the cryptocurrency market, particularly for altcoins like Chainlink, Polygon, Cardano, Ripple, and Polkadot.
Cryptocurrency exchange Coinbase has argued in a legal brief that tokens are not securities and that the Securities and Exchange Commission (SEC) has exceeded its regulatory authority, as it seeks to have a lawsuit from the SEC dismissed. Coinbase contends that tokens traded on its platform do not meet the criteria for "investment contracts" and that the SEC is violating the Major Questions Doctrine. The outcome of the case will determine whether certain cryptocurrencies are considered securities and whether Coinbase failed to register with the SEC.
Coinbase argues that the SEC exceeded its authority in classifying cryptocurrencies listed on the exchange as securities, claiming that the SEC's broad definition of a security is not in line with U.S. securities laws.
