• Ethereum co-founder Joseph Lubin praised SEC Chair Gary Gensler as a „shining knight of decentralization.“
• Lubin said that Gensler and the SEC „are doing a great job of driving projects in our ecosystem to radically decentralize themselves.“
• Kraken recently paid a $30 million penalty to the SEC after it was accused of operating an unregistered security offering.
Ethereum Co-Founder Praises Gary Gensler
Ethereum co-founder Joseph Lubin praised SEC Chair Gary Gensler as a „shining knight of decentralization“ during ETHDenver (which ended on March 5). He said that Gensler and the SEC were doing a great job in driving projects towards radical decentralization.
Kraken Fined $30 Million by SEC
Kraken recently settled with the SEC, paying a $30 million penalty, over allegations it was operating an unregistered security offering through its staking program. The Howey Test determines whether a contract, scheme, or transaction meets the definition of a security; focusing on determining whether investors paid money in a common enterprise with the expectation of profits from the efforts of others.
Ripple CEO Disagrees with Regulatory Approach
Ripple CEO Brad Garlinghouse rubbished claims that compliance can be achieved by simply registering; saying no such registration process exists for digital assets like XRP yet. He also argued that regulators should focus their attention on bad actors rather than punishing companies that have complied with existing laws.
Coinbase Ready to Defend Staking Program
Coinbase has said it is ready to defend its staking program in court if necessary. Coinbase’s Vice President Dan Romero assured customers that Coinbase had done everything necessary to ensure regulatory compliance and was confident about defending its stance if required.
Conclusion
Lubin’s praise for Gensler shows how much progress has been made since he took office at the beginning of 2021 and his dedication towards revamping cryptocurrency regulation in the US. At present, companies are taking extra precautions to ensure regulatory compliance and protect consumers from fraudulent activities or scams related to digital assets
