Crypto firms complain about lack of clarity from SEC and Washington


© Reuters

Investing.com – Crypto businesses are frustrated with the lack of clear rules from the US government and the aggressive actions of the Securities and Exchange Commission against them.

Unlike other countries, the United States has yet to put in place an overarching framework or set of regulations that allow cryptocurrency and blockchain businesses to operate without fear of being targeted by regulators.

On Wednesday, the SEC sent the Coinbase (NASDAQ:) exchange a Wells notice, warning the company that it had identified potential violations of U.S. securities laws. The SEC also unveiled fraud and unregistered securities charges against cryptocurrency founder Justin Sun and celebrities who endorsed the digital coins he offered.

The SEC is currently in litigation with a number of other companies, including , Genesis and Gemini.

Joe Lubin, CEO of ConsenSys and co-founder of ConsenSys, said he thought the ecosystem was “generally frustrated.”

“I think we keep watching the SEC play this game of punishing people who still survive. And it’s kind of, you know, kind of a frustrating thing to watch,” said Nicolas Cary, President of Blockchain.com .

Many in the cryptocurrency industry believe this is the wrong way to go.

“I think regulatory regimes are less effective when you try to analyze cryptocurrencies through the prism of traditional finance. You think, ‘Is that kind of like a stock? Is it a commodity? No, it’s none of that. It’s cryptocurrency,” said Oliver Linch, CEO of Bittrex Global.



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