Blockchain Association Members Say Courts Will Prove SEC Gary Gensler Wrong
Members of the Blockchain Association have commented on the recent actions of the US Securities and Exchange Commission (SEC).
CEO says Gensler would be proven wrong
The SEC sued Binance and Coinbase on June 5 and June 6, respectively. Kristin Smith, CEO of the Blockchain Association, commented on the events on June 6, They said,
“The SEC does not make laws – it only makes allegations – and we are confident that the courts will prove (Securities and Exchange Commission) Chairman (Gary) Gensler wrong in due course.”
She said that despite Gensler’s claims, there is no regulatory clarity for the crypto industry. He also expressed support for a Republican discussion draft that could create clear regulation and “reign in Chair Gensler’s relentless crusade.” Smith said his group would advocate for its members and fight the SEC in court.
In a separate interview with Forbes June 7, Smith said the SEC could take action against other companies. However, he believes that the SEC’s current action against Coinbase has already “sent the message that (Gensler) wanted to send.”
Chief Policy Officer also comments
Other members of the Blockchain Association have also commented. Chief Policy Officer Jake Chervinsky said that The SEC’s description of investment contracts is so broad that “basically all luxury goods in existence,” from watches to cars, can be securities.
In its case against Coinbase, the SEC alleged that the firm’s staking program and crypto listing are investment contracts. It also said that “novel investment vehicles” such as orange trees and mobile phones have been found to be investment contracts.
Chervinsky further criticized the SEC’s treatment coinbase business model and hurting those who invested in the company’s stock. He echoed Smith’s comments On the lack of clarity and possible loss of SEC in court.
Coinbase has yet to announce its full plans to fight the SEC. CLO Paul Grewal said it is currently pursuing its petition for rulemaking june 6,
