SEC Chair Gensler: Don’t Be Like Goldfish, Comply With The Law

Key Points:

• SEC Chair Gary Gensler believes compliance is necessary to protect investors and has compared it to calling a dog a goldfish.
• Companies making securities available to American investors must comply with American laws, regardless of whether they are offshore or onshore.

SEC Chair Gensler compares skirting crypto laws to calling a dog a goldfish. Companies can’t move offshore to avoid compliance.

The regulatory environment for crypto in the U.S. is causing some companies to move offshore to avoid regulatory compliance. This move has not gone unnoticed by Gary Gensler, the Securities and Exchange Commission chair, who believes that crypto markets suffer from a lack of regulatory compliance, not regulatory clarity.

In a new pet-themed video on Twitter, Gensler compared the compliance conundrum of crypto to calling a dog a goldfish in order to skirt leash laws.

He stated that it doesn’t matter if a company calls itself onshore or offshore; it must comply with American laws if it makes securities available to American investors.

“In many places around the country, we’re required to use a leash when you walk your dog. But let’s just say you get stopped because you’re walking Rover unleashed. What do you think would happen if you told the police officer that, Rover is actually a goldfish? You’d still get a citation. And that’s because the law cares about what something actually is, not what you call it.”

Gensler said

Gensler’s comments come amid a tussle between the crypto industry and the SEC regarding regulating cryptocurrencies. Coinbase, one of the most vocal companies in this space, recently sued the agency.

Gensler’s stance is that many crypto platforms are pretending that the investment contracts they offer are more like goldfish, and the lack of compliance by these platforms means that basic investor protections are not in place.

“Many crypto platforms are just pretending that these investment contracts that they offer are more like goldfish, and the lack of compliance by these crypto platforms means that you don’t have basic investor protections.”

“It doesn’t matter if you call yourself onshore or offshore. If you make securities available to American investors, you must comply with American laws.” “The law is clear.”

Gensler continued

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