Gary Gensler believes that the crypto ecosystem should receive the same treatment as the capital market, which many critics question. Mark Cuban accused the SEC chairman of not understanding cryptocurrencies and blockchain technology, inviting him to resign from his office.
Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), recently expressed his opinion on the crypto market. He stated that the industry should not receive a special status and follow the same regulation as capital markets.
He criticized carmakers for using crypto lending platforms, saying people deserve protection regarding motor and investment vehicles.
The official said that many crypto lending platforms have gone bankrupt without paying their clients. However, Mark Cuban, among other players in the crypto ecosystem, accused the SEC of not responding to investors.
The American entrepreneur invited him to schedule an appointment to discuss the matter. He even suggested that the SEC chairman post the line guidelines he would like to see and be ready for comments.
Cuban said Gensler would facilitate communication with investors and entrepreneurs if he worked on their behalf. He highlighted that it was almost impossible for those who could not pay for the services of a lawyer.
They Accuse the SEC of Not Understanding How Cryptocurrencies Work
Tony Edwards, another player that responded to Gensler, questioned him for giving the crypto market the same treatment as other capital markets. He pointed out that the position of the SEC chairman was unjustifiable, even inviting him to resign from his office.
Edwards told Gensler that he was wrong not to regulate cryptocurrencies differently, as they operate globally on decentralized blockchain networks. He highlighted that other countries treat cryptocurrencies as virtual currencies while the SEC chairman wants them to be securities. He even suggested that the official might seek to line his pockets and gain more power, inviting him to quit.
Meanwhile, Leigh Drogen said that Gensler did not know the nature of cryptocurrencies and blockchain technology. He also commented that the SEC chairman condescended to investors and the public regarding the matter.
Drogen said it was about the global nature of cryptocurrencies and their protocols, not about the new technology. He explained that Gensler could not have local registers for a global permissionless accessible financial system.
In early August, the SEC announced that it would investigate all US-based cryptocurrency exchanges. According to the staff of the office of Senator Cynthia Lummis, those platforms will not be able to escape from the regulation.
The SEC investigates the Coinbase exchange, the largest in the country, and plans to scrutinize Binance. Both companies have struggled to appease regulators, and the latter has even created a separate division with limited services.
Bitcoin is trading at around USD 21,512 and has accumulated a 0.4% gain over the last 24 hours. While its daily trading volume is above USD 27.43 billion, its market capitalization is about USD 411.19 billion, according to CoinGecko.
By Alexander Salazar
