SEC's Gensler defends recent crypto enforcement actions

In a speech delivered at the Piper Sandler Global Exchange & FinTech Conference, SEC Chair Gary Gensler responded to the recent backlash from the crypto industry and defended the regulatory agency's enforcement actions against Coinbase and Binance.

Gensler expressed his belief that there is nothing exceptional about crypto assets or exchanges that would exempt them from compliance with securities laws.

Gensler defended the SEC's actions, stating that mainstream financial institutions would not be allowed to engage in the behaviors that are prevalent in the crypto sector. He rejected claims of a lack of fair notice, stating that market participants "made a calculated economic decision to take the risk of enforcement as the cost of doing business."

Gensler acknowledged the need for effort and cooperation, emphasizing that compliance cannot be achieved by simply having meetings with the SEC without a genuine willingness to make the necessary changes to adhere to securities laws.