During your participation in the virtual conference Global Exchange and Fintechwhich was attended by representatives of registered stock exchanges in the United States, the president of the Securities and Exchange Commission (SEC) assured that cryptocurrency exchanges operate knowing that they are breaking the law.
As disseminated in a statement published this June 8 on the agency’s website, Gensler focused his speech on the issue of lawsuits filed this week against two of the exchanges of the largest cryptocurrencies on the market: Binance and Coinbase.
These are lawsuits that have been followed by other legal actions, such as the request to freeze the funds of the Binance subsidiary in the United States and the summons to the CEO of this platform, Changpeng Zhao.
The facts have not only generated the responses of the directors of the exchanges, denying the accusations, but the rejection of the ecosystem from cryptocurrencies to Gensler. The differences have led to verbal confrontations through the media, in which Binance’s lawyers assure that some time ago the official even wanted to be an advisor to this platform.
Despite this, the president of the SEC ratified the body’s position in its legal actions, pointing out that these companies They are aware that they operate with cryptocurrencies that are securities and that, therefore, must be registered. It alleges that exchanges know the rules and know that they are breaking it.
Gensler related an anecdote about a Binance head of compliance, who, he said, in 2018 I commented to a colleague the following: “we are operating as an unlicensed stock exchange in the US bro.”
He also referred to the excuses made by the CEOs and heads of compliance of these platforms, when they allege that they have difficulties registering with the SEC.
I disagree with the idea, and recent history refutes it, that compliance by cryptocurrency intermediaries is not possible. I recognize, and, again, I think it’s appropriate, that it takes work. It is not just a matter of “paying lip service to [el] desire to comply with applicable laws” or seeking a bunch of SEC meetings during which you are unwilling to make the changes necessary to comply with securities laws.
Gary Gensler, Chairman of the SEC
He also quoted the words of Gurbir Grewal, SEC Director of Compliance, pointing out that you cannot ignore the rules because you do not like them or because you prefer different ones.
And “since most tokens are subject to securities laws, it follows that most industry intermediaries must also comply with securities laws,” Gensler said. In this sense, he reiterated in his speech that these assets they respond to the known Howey’s test.
Based on this, the SEC official considers that the actions of the promoters of cryptocurrencies, which emerged after the creation of Satoshi Nakamoto, resembles that of businessmen who benefit from the growth of the shares of their companies.
As CriptoNoticias has reported, the controversy surrounding whether cryptocurrencies are securities or not, has been going on for some time. And even though The outcome of the lawsuits is yet to be known.the recent events that confront the exchanges and the regulators of the United States can accelerate a definitive position taking that gives closure to the debate.