The US SEC chair Gary Gensler wants Coinbase to register with the regulatory agency.
Coinbase should register with the SEC
Gary Gensler, the United States Securities and Exchange Commission (SEC) chairman, has told cryptocurrency exchange Coinbase to register with the regulator. He made this known during a senate hearing yesterday.
Gensler told the Senate banking committee that the SEC, similar to other federal regulatory agencies, doesn’t have any direct oversight of cryptocurrency exchanges. He made this statement as a response to questions posed by Sen. Elizabeth Warren (D-Mass.) about selling cryptocurrencies.
The SEC chair said, “They haven’t yet registered with us, even though they have dozens of tokens that may be securities.” Senator Warren had posed the question of cryptocurrency exchanges temporarily facing outages and what happens to investors’ funds during that period.
Gensler maintained that most of the cryptocurrency projects currently available are securities rather than commodities. “I think funding wise we could use a lot more people. I just have to be frank with you, I mean, there are 6,000 projects. And while some of those are commodities, many of them are securities under the law,” he added.
SEC asks Coinbase to shut down its lending program
This latest comment comes a few days after Coinbase CEO Brian Armstrong revealed that the SEC had asked the exchange to shut down its lending program. According to Armstrong, the SEC said it is worried about Coinbase’s Lend program. However, the SEC didn’t give any guidance in compliance with existing laws.