The SEC has been trying to gain control over the crypto space. The chairman Gary Gensler is increasing his reach in the crypto industries and imposing new laws and rules. Many even speculate that he wants to gain unlimited power over the crypto industry. Reports also suggest that Gary wants to regulate the stable coin industry as securities. In fact, we have already seen how the SEC is terming different coins as securities while not others without giving any explanation.
What does this mean?
The SEC is fighting with XRP over the securities claim in the court. And they have even warned Coinbase over the securities issue as they claim the lending of crypto involves securities. Coinbase has also talked about this on Twitter, citing how the SEC is trying to assert control over their lending business without any solid reason. The worst part is that the SEC is not even explaining the reason behind their decision or conclusions.
One of the critics of the SEC and Gary said that he wants unlimited power in the industry. According to Gensler, the crypto regulations aren’t proper as in order to regulate the market, they have just painted a boarder picture of the same. And from what it seems, if Gary starts to regulate the space, we can expect crypto growth to slow down. Innovation needs breathing space, and the strict laws of the SEC that are meant to litigate rather than solve problems will stop that.
The comparison with private banknotes
According to Gorton, a profession at Yale School of Management, stablecoins are similar to private currencies of the past that failed miserably. These notes came around the civil war and were difficult to use and implement. And the government had to take solid steps to take these notes out of circulation. The same should be done here and stablecoins should be looked after according to Gorton. We should note that there have been reports that Tether has been minting new coins without a backing which is why the space is getting a lot of backlashes.
What are your thoughts on the SEC and Gary trying to get unlimited power in crypto? And do you think they will be successful in that? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.