Blockchain Association CEO Kristin Smith responded to the U.S. Securities and Exchange Commission’s (SEC) back-to-back lawsuits against major cryptocurrency exchanges Coinbase and Binance by saying that SEC Chair Gary Gensler is attacking the entire industry, rather than allowing lawmakers to enact comprehensive regulations for the sector.
“The Digital Asset Market Structure discussion draft is a step forward to not only craft effective regulation for digital assets, but also rein in Chair Gensler’s relentless crusade against American innovation,” Smith said in a statement. “Blockchain Association stands ready to advocate for our members – and the entire crypto industry – and fight back in Congress and the courts.”
Earlier this week, the SEC filed complaints against both Binance and Coinbase, alleging that Coinbase should have registered as an exchange with the SEC and accusing Binance of offering unregistered securities and allowing U.S. customers to use the global Binance platform, instead of restricting them to its U.S. platform, according to the SEC website.
After filing the two lawsuits, Gensler told CNBC in an interview that he doesn't see the need for "more" digital currencies, Decrypt reported.
"We already have digital currency. It’s called the U.S. dollar. It’s called euro. It’s called the yen. They’re all digital now," Gensler said. His comments come as lawmakers are criticizing the SEC's harsh approach to the crypto industry, warning that a lack of regulatory clarity coupled with strict punishments will cripple innovation in the sector.
Industry experts have said that the SEC's actions this year indicate attempts at a broad crackdown aimed at pillars of the crypto industry, The Trusted Professional reported. In the wake of the collapse and bankruptcy filing of crypto exchange FTX in November, the SEC began ramping up its enforcement actions in the sector. Former regulator Coy Garrison, a partner at Steptoe & Johnson LLP, said of the SEC, "There is a political incentive to bring bigger cases post-FTX to be viewed as the responsible cop on the beat."
Changpeng Zhao (CZ), the Canadian CEO and founder of Binance, which is the largest crypto exchange in the world by volume, was featured as a guest on the "Bankless" podcast the week before the SEC's lawsuit. CZ said on the podcast that regulators liked Sam Bankman-Fried, the former CEO of FTX, in part because he was young, American and well-educated, so when FTX collapsed and Bankman-Fried was discovered to be a fraud, regulators felt their trust had been betrayed. Consequently, CZ said regulators are now lashing out at players in the crypto industry, regardless of how eager to comply those players are.
“They missed the bad guy, and now they're punishing all the remaining good guys,” CZ said.
According to Crypto Pill, New Mexico's economy benefits from a diverse range of blockchain startups.
Bitcoin mining has also taken off in New Mexico due to the availability of cheap electricity and ample land resources, according to a report from The European Business Review.
