The SEC Says It Treats Crypto Like the Rest of the Capital Markets (wsj.com) 41
Gary Gensler, the chair of SEC, writes in an op-ed: We can dispense with the idea that crypto lending isn't subject to regulation. On the contrary, the rules have been around for decades. The platforms aren't following them. Noncompliance isn't the inevitable result of the crypto business model or underlying crypto technology. Rather, it is as if these platforms are saying they have a choice -- or even worse, saying "Catch us if you can." As I said in a speech last year, "Make no mistake: If a lending platform is offering securities, it ... falls into SEC jurisdiction." On many occasions, the commission and state regulators have addressed how the relevant case law implicates crypto assets, including crypto lending.
There are costs of complying with securities laws, just as there are costs to car makers of adding seat belts. Platforms that offer crypto lending need to comply anyway, not merely because that's the law, but also because it helps protect investors and increase trust in our markets. Fortunately, there is a path forward. I encourage platforms offering crypto lending to come in and talk to SEC staff. Getting these platforms into compliance with the securities laws will benefit investors and the crypto market. In the meantime, the SEC will serve as the cop on the beat. As with seat belts in cars, we need to ensure that investor protections come standard in the crypto market.
There are costs of complying with securities laws, just as there are costs to car makers of adding seat belts. Platforms that offer crypto lending need to comply anyway, not merely because that's the law, but also because it helps protect investors and increase trust in our markets. Fortunately, there is a path forward. I encourage platforms offering crypto lending to come in and talk to SEC staff. Getting these platforms into compliance with the securities laws will benefit investors and the crypto market. In the meantime, the SEC will serve as the cop on the beat. As with seat belts in cars, we need to ensure that investor protections come standard in the crypto market.
In other words the SEC ignores them (Score:4, Interesting)
The SEC pays no attention to capital markets. The SEC does its level best to avoid knowing anything at all about capital markets until something politically relevant happens. The SEC had its nose repeatedly rubbed in Madoff's ponzi and played dumb. The SEC in playing dumb now on any number of issues, one exception being when some kid makes a headline by earning an outrageous amount off some meme stock. Then the SEC pounces into action, criminalizes the innocent, balkanizes new rules around whatever allowed such an awful thing to happen, and then goes back to sleep, carefully and deliberately ignoring stuff.
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This is exactly why I will CERTAINLY support another Trump term in office. His revenge tour on the public sector will be with whatever the costs and collateral harms could possibly be.
These guys ARE a swamp and it does need to be drained, damn the impacts on a few migratory birds.
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They know (Score:4, Informative)
This isn't to say they're not gonna keep trying, and it'll be a disaster if they succeed. Imagine a completely unregulated securities market with absolutely nothing backing it that people are throwing money in. A global ponzi scheme with every single pension program being dragged in and why not Social Security while we're at it (the same corrupt jackoffs who want to deregulate crypto usually want to privatize SS).
The resulting global financial melt down will make 2008 look like the
If you want to stop that (and keep your job and/or retirements) now's the time. Pay attention to who you vote for. And vote in your primary election.
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Pay attention to who you vote for. And vote in your primary election.
The voters in America don't actually matter much. [represent.us]
“The preferences of the average American appear to have only a miniscule, near-zero, statistically non-significant impact upon public policy.”
Gilens & Page, Perspectives in Politics
Re:They know (Score:4)
Trump won by a very slim margin in 2016, and the result was three Supreme Court justices and some dramatic changes in public policy.
Voting matters.
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The problem seems to be that your system is too rigid and resists change to the point that you're still voting for your president on the second Tuesday in November, because that suited 18th century farmers.
It's a shame, because it may well take an awful lot of violence to reform America and that will be bad for everyone.
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That sounds like a stupid way to run a country.
What do you suggest as an alternative?
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They absolutely matter (Score:1)
The baby boomers are dying off and Gen XMZ own so little property that they're going to demand another new deal or Great society and the 1% don't want to give up a dime of the money and power they've hoarded. As long as the boomers are alive and have their property they see more than happy to allow this to happen at least in aggregate.
I thi
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"the rules have been around for decades. The platforms aren't following them."
"there is a path forward. I encourage platforms offering crypto lending to come in and talk to SEC staff. "
Re: Gary Gensler is full of shit (Score:1)
The law should not be accessible only if you go talk to a bureaucrat. That means the bureaucrat is making up laws as they go along which SCOTUS has repeatedly rejected as unconstitutional. If there is a law, itâ(TM)s on the books and clearly published by Congress, otherwise the law does not exist and you are free to do it.
Here too, they are talking about crypto lending which is impossible, true cryptocurrencies cannot be lent, you either have them or you donâ(TM)t, you canâ(TM)t speculate on
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What the hell do you think lawyers are for?
No one should have to hire a lawyer to find out what the law is.
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Seems awfully stupid to enforce a constraint that laws should be so simple that any weekend warrior can interpret them. Laws are complicated because the world is *exceedingly* complicated. Laws are the a result of how humans, emotions, societies, nevermind math, physics, science, biology etc and a whole host of complicated things work. Should those things not be complicated? Fitting a complicated world in simple rules values simplicity over fairness and correctness. And frankly, that's where non-civilizatio
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Heck, it might take a lawyer to understand some of my HOA rules.
I know nothing about finance other than chicks dig it. I'll go out and start a crypto bank and then be shocked that there are banking regulations.
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What "Applicable Rules". How about: ALL the rules. All of them that have to do with what crypto is doing.
It's NOT rocket science, they just want you to think it is, and keep waffling and handwaving "That they could not possibly know!".
They know damn well what rules they are supposed to be following, and are *actively* trying to avoid them.
They might... be offering securities (Score:2)
"Make no mistake: If a lending platform is offering securities, it ... falls into SEC jurisdiction."
Right. IF offering securities. Lending someone money is not inherently creating a security, However... Not unless that debt is made into a debt security that is such as a bond or note, and then that bond or note is offered to the public. You purchase a bond, and it bears interest, and you could potentially expect to sell the bond for a profit if the prevailing interest rates go down or that debtor's cr
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If I *lend* money to a non-bank, what I get back is a promise of repayment. That's a security. And you certain
Of course they will regulate it. Or try to. (Score:3)
No one ever said that governments would not want to regulate cryptocurrencies. Clearly they do, just as they are determined to regulate everything that moves or involves money in any way. They may find this to be quite difficult though. They can write all the regulations they want but enforcing them could be a problem. Documenting a paper trail for money is not the same as with ordinary currencies and the cryptocurrency designers had this specific situation in mind when they built cryptocurrencies. Good luck, Feds!
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However, the minute you *exchange* crypto-currency with somebody else, you are now engaging in a transaction that is regulated just like any other transaction. If you can co
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