The former head of internet law enforcement at the Securities and Exchange Commission (SEC) has warned the crypto industry that a “regulatory attack has only just begun.” His warning follows several recent enforcement actions taken by the securities regulator against major crypto firms.
“The SEC’s regulatory assault has only just begun”
Former Securities and Exchange Commission (SEC) head John Reed Stark has warned the crypto industry of a growing “regulatory attack”. Stark founded and served as head of the SEC Office of Internet Enforcement for 11 years. He was also an SEC attorney for 15 years, where he led cybersecurity projects, investigations, and enforcement actions.
Stark explained in a tweet on Thursday that the SEC “slapped Blockfi for not registering its crypto lending program, blocked Coinbase from launching its crypto lending program and just hit Gemini/Genesis for his cryptocurrency lending scam. He warned:
Buckle up: an SEC regulatory attack is just beginning.
Last week, the SEC accused crypto exchange Gemini and crypto lender Genesis “for the unregistered offering and selling of securities to retail investors through the Gemini Earn crypto asset lending program.” In February last year, the regulator took action against the cryptocurrency lending platform Blockfi who applied bankruptcy in November. In addition, the securities watchdog also threatened to sue Coinbase if the Nasdaq-listed crypto exchange proceeded to launch a lending program in September 2021. Coinbase later scrapped its plan.
Stark is a vocal crypto skeptic, regularly commenting on social media about the danger of investing in cryptocurrencies. “In the land of cryptocurrencies, the Ponzi shell game continues and a death spiral may have begun,” he said last November. “Do not fail at your peril, crypto investors,” he stressed, pointing out that crypto has “no FDIC insurance, no SEC review teams, no oversight. regulation, no license and no consumer protection”. He warned that with crypto investing:
You are 100% on your own.
Do you agree with John Reed Stark on crypto and that a regulatory assault from the SEC is just beginning? Let us know in the comments section below.
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