SUMMARY

• Gensler calls for crypto exchanges to treat cryptocurrencies like securities
• Coinbase sues SEC for clarity on regulatory framework
• SEC targets non-compliant exchanges, lack of investor protecti

Hey folks, Gary Gensler, the SEC Chairman, has a message for Coinbase and its crypto exchange pals: it's time to follow the rules, no more excuses! 😎

In a video posted on Twitter, Gensler made it clear that crypto exchanges should treat cryptos like securities and quit pretending that the regulations are hazy. He was like, "Listen up, the law is crystal clear. If you're a securities exchange, clearinghouse, broker, or dealer, you better comply, register with us, and handle those conflicts of interest and disclosures. We've had these laws for 90 years, and they've been protecting investors like a boss."

This whole thing comes after Coinbase decided to sue the SEC, hoping to make the agency spill the beans on its stance regarding regulating the crypto industry using existing SEC frameworks. Coinbase, which got a Wells notice in March, has been saying that the SEC is all over the place when it comes to treating cryptos, and the industry is desperate for some regulatory clarity.

Since January, the SEC has been taking action against crypto exchanges like Bittrex and Gemini, crypto lender Genesis, and some individuals accused of manipulating crypto assets, including crypto entrepreneur Justin Sun and Terraform Labs founder Do Kwon (not exactly a shining example).

In his "Office Hours" video, Gensler tried to clear the air, saying that what crypto exchanges are doing is obviously marketing and selling securities, even if the debate has been a bit muddled. He added that by not complying with SEC regulations, these platforms lack basic investor protections, leading to clients being unable to access their funds when problems arise, like bankruptcies.

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