““We can drop the notion that cryptocurrency lending is not regulated. On the contrary, the rules have been around for decades. Platforms don’t follow them.”
What does automakers have to do with cryptocurrency lending platforms? Consumers and investors deserve protection – and that applies to both cars and investment vehicles, says Gary, chairman of the U.S. Stock Exchange. Gensler claims The Wall Street Journal article Released Friday night.
Just as the National Transportation and Motor Vehicle Safety Act signed by President Lyndon Johnson in 1966 protected motorists, the federal securities laws signed by President Franklin Roosevelt during the Great Depression of the 1930s protected investors. was intended.
Gensler said recent market events, such as moves by some crypto lending platforms to freeze investor accounts and seek bankruptcy protection, make it important for crypto companies to comply with securities laws. He said he gave reasons.
It doesn’t matter what kind of assets an investor puts into a cryptocurrency app — cash, gold, bitcoin, chinchilla, or whatever. He argued that it is up to cryptocurrency platforms to determine what protections are provided by law.
Investors benefit from knowing what lies behind cryptocurrency companies’ claims to provide consistent returns. Disclosure helps investors understand what is being done with their assets.
A cryptocurrency platform, whether it is called a lending platform, a cryptocurrency exchange, or a decentralized financial platform, should adhere to longstanding investor protections by labeling its products or promised profits. Through decades of litigation, the Supreme Court has made it clear that the economic reality of a product, not its label, determines whether it is a security under the securities laws. I’ve been to
That’s what the Securities and Exchange Commission found Recent payment We use BlockFi, a crypto lending platform.
Non-compliance is not an inevitable result of the cryptocurrency business model or underlying cryptocurrency technology. Rather, it’s like these platforms are saying they have a choice, or worse, “catch us if you can.”