Former SEC Official’s Crypto Warning: The Regulatory Onslaught Is Just Beginning
The crypto industry has been warned of growing regulatory assault by John Reed Stark, an official with the Securities and Exchange Commission (SEC). John Reed founded and served as head of the Securities and Regulatory Commission’s Office of Internet Enforcement for 11 years. He was also a lawyer for the Department of Enforcement for 15 years, where he led a variety of civil crimes and projects and investigations that were directly or indirectly related to technology. Through a tweet on Thursday, he lays out his views and explains that the Securities and Exchange Commission has succeeded in registering its crypto lending program and hit out at Blockfi for failing to do so, Coinbase has been banned from registering its crypto lending program. was prevented from launching as well as hurtling Gemini/Genesis to the crypto landing gear. He adds that the regulatory onslaught is certainly just beginning.
Last week, the SEC charged crypto exchange Gemini and crypto lender Genesis for unregistered offering and selling of securities to retail investors through the Gemini Earn Crypto Assets learning program. In February last year, the regulator also took action against cryptocurrency lending platform BlockFi, which filed for bankruptcy protection in November. In addition, the securities watchdog also threatened to sue Coinbase if the Nasdaq-listed crypto exchange was to launch a lending program in September 2021. Official John Reid, of course, takes a crypto skeptic’s view, regularly informing and elaborating on social media about the dangers of investing in cryptocurrencies.
Certainly John is a person who has always been critical of crypto currency and a clear example of this is that he has also compared it to a death squad in that it does not guarantee you anything and your investment No one protects or else and he also insisted to all the investors that this is not any kind of insurance which will protect you and help you. Apart from this, it can also be said that there is no regulator or there is no FDIC insurance present in it and there is no ACEC testing team. It can be said with certainty that there is no protection whatsoever and cautioned that with crypto investing you are 100% on your own and no one is going to stand in for you and quoting Stark , CNBC Mad Money host Jim Cramer also makes similar statements and is warning about the SEC doing “a big sweep” of the crypto industry. They are definitely urging investors to get out of crypto currency now.