SEC Chair Gary Gensler Warns of Imminent Crypto Crackdown, Explains Why Proof of Reserves Has No Value: Report
The Chair of the U.S. Securities and Exchange Commission (SEC) reportedly says that a crackdown on the crypto industry is imminent in the wake of FTX’s high-profile collapse.
According to a new report by Bloomberg, SEC Chair Gary Gensler says that the regulatory agency is coming after crypto firms that don’t comply with its rules, and compares such companies to casinos.
“The runway is getting shorter. The casinos in this Wild West are non-compliant intermediaries.”
He also says that the trend of crypto exchanges proving they have reserve assets to back up their customers’ funds means nothing, as the practice doesn’t live up to current regulatory disclosure standards.
“Proof of reserves is neither a full accounting of the assets and liability of a company, nor does it satisfy segregation of customer funds under the securities laws.”
According to Gensler, regulators should focus on making sure crypto firms separate their funds and their customers’ funds as well as keep accurate records of all transactions.
“There are some in this field that have talked about ways to give customers confidence that their crypto is really there. They should do that by coming into compliance with time-tested custody, segregation of customer funds rules and accounting rules.”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Molibdenis/Nikelser Kate
