Gary Gensler indirectly hinted that he will not wait for a proper regulatory framework, instead will try to regulate the crypto companies under the existing traditional securities laws.
The United States Securities and Exchange Commission (SEC) is a dominant spot money market regulatory body in the United States. Despite unclear regulatory policies, the SEC agency remains active to impose regulatory action on Crypto companies, which perform their financial activities against the traditional securities law. In the past few weeks, this agency faced significant criticism over the bad Crypto space regulatory approach which failed to prohibit the events like FTX bankruptcy, BlockFi bankruptcy, Genesis Global Trading bankruptcy, etc.
Recently, The SEC agency announced that they charged Caroline Ellison and Gary Wang for their involvement in the FTX fraud, and also confirmed that these two former leaders of FTX & FTX affiliated company Alameda Research are cooperating with the agency to disclose everything that happened behind the dark room of FTX exchange.
“The SEC today charged Caroline Ellison and Gary Wang for their roles in a multiyear scheme to defraud equity investors in the crypto trading platform FTX. Ellison and Wang are cooperating with the ongoing investigation,” the SEC agency stated.
On the same day, Gary Gensler, chairman of the SEC agency, noted that Crypto investors will remain under significant possibilities of risks until Crypto companies will not follow the Securities Act.
Further, Gensler said that the agency will do everything in this situation with the use of its existing law tool as a priority option.
The statement passed by the SEC Chairman is hinting that the agency will not wait for any kind of future crypto regulatory framework or law, instead will continuously take action on behalf of the current regulatory framework, where securities law is applicable.