Former SEC Official’s Crypto Warning: Regulatory Onslaught Is Just Beginning

Former SEC Official's Crypto Warning: A Regulatory Onslaught Is Just Beginning

The Securities and Exchange Commission (SEC)’s former head of web enforcement has warned the crypto business {that a} “regulatory onslaught is just beginning.” His warning adopted a number of latest enforcement actions the securities regulator took towards main crypto corporations.

‘SEC Regulatory Onslaught Is Just Beginning’

Former Securities and Exchange Commission (SEC) official John Reed Stark has warned the crypto business of an escalating “regulatory onslaught.” Stark based and served as chief of the SEC Office of Internet Enforcement for 11 years. He was additionally an SEC enforcement lawyer for 15 years the place he led cyber-related initiatives, investigations, and enforcement actions.

Stark defined in a tweet Thursday that the SEC “hit Blockfi for failing to register its crypto-lending program, stopped Coinbase from launching its crypto-lending program, and Just hit Gemini/Genesis for its Earn crypto-lending grift.” He warned:

Buckle up: An SEC regulatory onslaught is simply starting.

Last week, the SEC charged crypto trade Gemini and crypto lender Genesis “for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.” In February final 12 months, the regulator took motion towards cryptocurrency lending platform Blockfi which filed for bankruptcy in November. Moreover, the securities watchdog additionally threatened to sue Coinbase if the Nasdaq-listed crypto trade proceeded to launch a lending program in September 2021. Coinbase subsequently shelved its plan.

Stark is a vocal crypto skeptic, commonly commenting on social media in regards to the hazard of investing in cryptocurrencies. “In crypto-land, the Ponzi shell game continues & a death spiral may have now begun,” he stated final November. “Fail not at your peril crypto investors,” he confused, emphasizing that crypto has “no FDIC insurance, no SEC examination teams, no regulatory oversight, no licensure, and no consumer protections.” He cautioned that with crypto investing:

You are 100% by yourself.

Citing Stark, CNBC Mad Money host Jim Cramer has additionally been warning in regards to the SEC doing “a big sweep” of the crypto business. He has urged traders to get out of crypto now.

Do you agree with John Reed Stark about crypto and that an SEC regulatory onslaught is simply starting? Let us know within the feedback part beneath.

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