Gary Gensler: SEC will use all powers against unregistered crypto companies

The chairman of the US Securities and Exchange Commission (SEC) believes that the cryptocurrency regulation legislation is absolutely transparent and requires crypto companies to register as soon as possible.

Addressing the North American Congress May 18, Gary Gensler warnedthat the regulator is ready to apply new measures against unregistered cryptocurrency companies, in accordance with the updated legislation.

“Cryptocurrency exchanges need to register. Otherwise, we’re going to use the powers that Congress has given us in our enforcement and oversight functions.”

Thus, Gensler answered the question of Republican member of the US House of Representatives from Arizona Steve Womack (Steve Womack), who expressed his dissatisfaction with the inability of the SEC to create a clear set of rules for regulating cryptocurrencies. He stated about the ambiguity of the legislation, drawing an analogy with football:

“Before an arbitrator raises the flag and forces crypto companies to register, businesses need to understand and know the rules of regulation.”

Gensler said that to date, the SEC has initiated more than 80 enforcement actions against cryptocurrency companies. He added that such actions are fully within the competence of the agency.

“I think the rules are actually quite clear. If you are raising money from the public, then investors naturally expect a return that you guarantee in exchange for funding,” he said.

Gensler said last week that crypto exchanges are playing against their clients. Tether, USD Coin, and Binance USD facilitate trading on major exchanges, potentially avoiding anti-money laundering (AML) and know-your-customer (KYC) regulations, he said.