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Gensler Highlights Crypto Compliance Over Clarity in Social Media Video

In a recent social media video, SEC Chair Gary Gensler emphasizes the importance of crypto firms complying with American laws. Gensler insists that the issue in crypto markets is a need for compliance, not regulatory clarity, a viewpoint some companies dispute.

Gary Gensler
Gary Gensler

Compliance Obligations Regardless of Location

Gensler uses a pet-themed analogy to explain that companies must comply with American laws if they make securities available to American investors, regardless of whether they operate onshore or offshore. He stresses that the law is clear on this matter.

Crypto Industry's Ongoing Tussle with the SEC

The video comes amid an ongoing struggle between the crypto industry and the SEC over cryptocurrency regulation. Coinbase, one of the most vocal opponents of the SEC's stance, recently filed a lawsuit against the agency.

Coinbase logo
Coinbase logo

Coinbase's Battle with the SEC

Coinbase, the largest U.S. crypto exchange, obtained a license to operate in Bermuda shortly before filing the lawsuit against the SEC. The company requested a new digital asset rule from the SEC last year and is now suing for an answer.

SEC's Aggressive Approach to Crypto Regulation

The SEC has taken a more assertive stance toward crypto recently, targeting companies like Coinbase and Bittrex for alleged noncompliance. Gensler refers to a recent lawsuit against a crypto platform that advised issuers to avoid SEC scrutiny by altering website language.