Securities and Exchange Commission chair Gary Gensler has hinted in his speech at a move to deal with bad players in the crypto industry. Gensler said the commission is prepared to file cases against the bad crypto players to protect investors.
The warning by the SEC happens after Ripple, a global payments firm working with blockchain technology together with two of its executives were sued at the end of 2020.
SEC took action against Ripple after it made $1.3 billion through the sale of cryptocurrency XRP as an unregistered security offering.
Gary warned of deceptive conduct by private funds, accounting frauds, insider trading, market shrewdness, and failure to act in retail customers’ best interests.
SEC commissioner Hester Pierce proposed a safe-harbor policy, which is among the commission’s regulatory approaches towards crypto.
SEC must ensure toughness to achieve its mission of encouraging the creation of wealth, ensuring investors’ safety as well as maintaining fair and orderly markets by enforcing regulations.
Major cryptocurrencies are currently mixed. BTCUSD is up 1.43%, ETHUSD is down 2.05%.
