Home » Currency News » SEC Chair Issues Dire Warning For Crypto Exchanges

Gamo Gensler, the current president of the Securities and Exchange Federation (SEC), has once again cracked down on encryption. In an investor advisory committee, the current chairman of SEC announcedThe operation of the loan platform account and password trading center "investment consulting can not rely on them as qualified trustees." Gensler added:

Just because you log on to the password trading website to claim to be a qualified custodian does not mean that it is a qualified custodian. When such a platform goes bankrupt-as we have seen again and again-the property of investors usually becomes the asset of a bankrupt company, and investors stand in long queues in bankruptcy courts.

For Gensler, consultants should comply with current escrow standards, which stipulate that investors' investment securities are owned by "qualified custodians". Gensler made it clear that such qualified custodians represent customers' private equity managers and are regulated by SEC under the US Investment Advisory Act of 1940.

Before that, SEC proposed a new federal government.Regulations will expand escrow standards to include encrypted money, while requiring trading centers to record ownership of customer property. The American Securities and Exchange Federation filed a filing saying:

(...) We will re-specify the escrow standard to the new rule 223-1 ("ensure Standard" or "proposed Standard") in accordance with the Consultants Act, and make a variety of modifications to enhance its maintenance. The proposal aims to recognize the evolution of products and services provided by investment advice to users and to strengthen and respond to existing escrow maintenance.

Gensler also mentioned to the advisory committee that forecasting data technology could result in an "essential transfer of benefits" related to consultants' requirements for clients. Gensler said he had asked the relevant staff of the agency to propose a solution to the problem.

The Securities and Exchange Federation of the United States continues to regulate and enforce the encryption field.

The recent statement by the Chairman of the Securities and Exchange Commission is closely related to the recent actions taken by the regulator.

Recently, the American Securities and Exchange FederationRatesTerraform Kabs and Dyeong Kuan, the company's headquarters in Singapore, claimed that they had participated in an algorithm-stable encryption property and other encrypted asset securities on suspicion of "planning multibillion-dollar encryption property" securities fraud. Gensler said:

Terraform and du Quan have been accused of failing to give society the comprehensive, fair and truthful disclosure required by a series of encrypted asset securities, especially King Luna and Terra investors.

The American Securities and Exchange Federation recently weakened encryption companies that give "unregistered securities". The crackdown by regulators has left many problems and unclear standards for investors.

Therefore, Coinbase alsoSendA campaign called "Crypto435" aims to solicit the concerns and demands of American customers affected by SEC behavior. The campaign will be held in all 435 congressional ps districts in the United States.

As of press time, the total market capitalization of encryption was $102.2 million, down 1.79% in the past 24 hours and 45% in the past year. The total market capitalization of Bitcoin has remained at $450 billion, accounting for 40.45%.

Stablecoin, on the other hand, is valued at $136 billion, or 12% of the total market capitalization of the login password ecosystem.

Selected pictures from Unspash, data charts from TradingView.com

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