JAKARTA - Recently, the SEC's crackdown on crypto companies sparked strong reactions from several major industry players, such as Coinbase, Ripple, and Circle. SEC chief Gary Gensler has rejected complaints from the crypto sector and confirmed the crackdown was important to prevent investor losses.
On Tuesday, March 7, Gensler criticized crypto companies in the US for disobeying SEC regulations. Several companies, such as Paxos and Kraken, have been subjected to the SEC crackdown in recent times.
However, there has been criticism of the SEC's handling of cryptocurrencies, with some calling for clearer laws related to the crypto business. Ripple CEO Brad Garlinghouse even stated that the lack of legal clarity surrounding crypto forces companies to leave the United States.
However, Gensler insists that compliance with SEC regulations is essential to protecting investors. He also criticized crypto companies that feel above the law. According to Gensler, crypto companies should comply with SEC regulations if they want to raise money from the public.
Some parties opposing the SEC's approach in the US cited other countries, such as Britain and the European Union, which already have a clear legal framework related to the crypto business. However, Gensler insists that regulations in the United States are also pretty clear and crypto companies should comply.
Despite the disagreement on the SEC's approach to the US crypto business, one thing is certain is that legal clarity is needed to encourage innovation and growth in the industry.
In an effort to protect consumers, the SEC has recently taken a crackdown on crypto companies, including FTX. However, this action drew criticism from several industry players who considered that the SEC's actions actually undermine cryptocurrency innovations in America.
In addition, the lack of legal clarity surrounding cryptocurrencies in the US forces some companies to leave the US and seek a more crypto-friendly place. Although the SEC claims that their actions aim to protect consumers, some think that this action is actually damaging the crypto industry and that no consumer is actually protected.
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