US Securities and Exchange Commission (SEC) chief Gary Gensler is "shelling out" for the industry, but that doesn't necessarily mean its demise. This was the opinion of Galaxy Digital cryptocurrency bank founder Mike Novogratz at a conference organised by Messari.
The top executive gave his take on Gensler's recent comments for the Washington Post. In the interview, the latter threatened to cause problems for the strip and trading platforms because of the Securities Act violation attributed to them.
"Without a doubt, Gary wants to regulate. He wants to be the sheriff of Cryptoville. The next six to 12 months will not be easy for industry players. We have failed in educating people in Washington - what digital assets are and what is important to the industry," Galaxy Digital CEO pointed out.
During his speech, Novogratz announced plans to fund lobbyists to help US authorities sort out digital assets.
BlockFi and Celsius have faced accusations in recent months from regulators in individual states of selling unregistered securities.
Coinbase has refused to launch USD Coin Crypto Savings Accounts (USDC) due to the threat of prosecution by the SEC.
It has also become known that the Commission is investigating Uniswap and, according to media reports, a number of other projects from the DeFi sector.
I suspect the SEC's goal isn't to "bring DeFi within a public policy framework" since it hasn't made any effort to develop such a framework at all. Just words & enforcement activity. Rather, the true goal seems to be crushing the market, as the SEC is credited for doing in 2018.
Recently, a group of US civil society organisations called on the SEC to step up its fight against cryptocurrencies, including through the regulation of Stablecoin, lending platforms and bitcoin exchanges.
Recall that Gensler had previously expressed the view that regulation is necessary for cryptocurrencies to survive.
In September, it became known that Coinbase is preparing a draft federal regulatory framework for consideration by US lawmakers.