The crypto majority, including Ripple Attorney, are displeased with the comment from Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), in a recent video.
Through a video on his Twitter handle, Gensler asked all crypto-related projects to register with the agency to protect U.S investors from digital currency risks. Furthermore, he added that economic and financial policies should still be maintained, despite the presence of digital currencies and technological advancement.
“There is no need to treat the crypto market differently just because different technology is used,” Gensler said in the video.
Ripple Attorney Reacts to Gensler’s Comments
The cryptocurrency community did not receive the comments from the SEC chief heartily, saying that Gensler wants to control the entire crypto market without providing clear guidelines for the nascent industry.
Attorney Stuart Alderoty, the General Counsel of blockchain company Ripple, also made his thoughts known in the recent video circulating on Twitter.
According to Alderoty, while there is a need for consumer and market protection, the SEC’s quest to group all digital currencies under its regulatory oversight is a combination of bad policy and law.
In contrast to what the SEC believes, the attorney also added that its jurisdiction in the cryptocurrency market is not limitless because other regulatory agencies in the United States are supposed to oversee some cryptocurrencies.
Additionally, Attorney John Deaton shared similar sentiments with Alderoty about the recent video made by the SEC chair. The attorney who plans to represent over 67,000 XRP holders in the SEC vs Ripple lawsuit said Gensler wants the SEC to oversee the crypto market.
“He prefers regulatory uncertainty and vagueness, which will allow regulation through enforcement to continue,” attorney Deaton added.
However, the SEC has not provided more precise regulations for the asset class, just as other countries did.
A company facing legal actions against the SEC, LBRY, also reacted to the video.
Crypto Enthusiasts Call for Clearer Regulations
While the crypto community has asked the U.S regulators to regulate the industry clearly, there is still much to be done by the latter. In addition, U.S President Joe Biden gave an executive order in March 2022 for the digital currency, but nothing has been done concerning the order.
It is no surprise that the SEC wants to oversee the entire cryptocurrency industry while ignoring the Commodity Futures Trading Commission (CFTC), whose function is to help regulate crypto. And many crypto players are keen on being controlled by the CFTC; the SEC stands as a significant opposition.
The calls are still loud enough. If the SEC wants to take over the entire cryptocurrency market, it should provide more explicit regulations for the sector.