Former SEC Official’s Crypto Warning: Regulatory Onslaught Is Just Beginning

Former SEC Official"s Crypto Warning: Regulatory Onslaught Is Just Beginning

The Securities and Exchange Commission (SEC)’s former head of internet enforcement has warned the crypto industry that a “regulatory onslaught is just beginning.” His warning followed several recent enforcement actions the securities regulator took against major crypto firms. ‘SEC Regulatory Onslaught Is Just Beginning’

Former Securities and Exchange Commission (SEC) official John Reed Stark has warned the crypto industry of an escalating “regulatory onslaught.” Stark founded and served as chief of the SEC Office of Internet Enforcement for 11 years. He was also an SEC enforcement attorney for 15 years where he led cyber-related projects, investigations, and enforcement actions.

Stark explained in a tweet Thursday that the SEC “hit Blockfi for failing to register its crypto-lending program, stopped Coinbase from launching its crypto-lending program, and Just hit Gemini/Genesis for its Earn crypto-lending grift.” He warned: Buckle up: An SEC regulatory onslaught is just beginning.

Last week, the SEC charged crypto exchange Gemini and crypto lender Genesis “for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.” In February last year, the regulator took action against cryptocurrency lending platform Blockfi which filed for bankruptcy in November. Moreover, the securities watchdog also threatened to sue Coinbase if the Nasdaq-listed crypto exchange proceeded to launch a lending program in September 2021. Coinbase subsequently shelved its plan.

Stark is a vocal crypto skeptic, regularly commenting on social media about the danger of investing in cryptocurrencies. “In crypto-land, the Ponzi shell game continues & a death spiral may have now begun,” he said last November. “Fail not at your peril crypto investors,” he stressed, emphasizing that crypto has “no FDIC insurance, no SEC examination teams, no regulatory oversight, no licensure, and no consumer protections.” He cautioned that with crypto investing: You are 100% on your own.

Citing Stark, CNBC Mad Money host Jim Cramer has also been warning about the SEC doing “a big sweep” of the crypto industry. He has urged investors to get out of crypto now. Tags in this story John Reed Stark, John Reed Stark crypto, John Reed Stark cryptocurrency, John Reed Stark Jim Cramer, John Reed Stark SEC, John Reed Stark SEC crypto regulation, sec crypto, SEC cryptocurrency regulation

Do you agree with John Reed Stark about crypto and that an SEC regulatory onslaught is just beginning? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. BIS Economists Recommend 3 Crypto Policies for Regulators Worldwide to Adopt REGULATION | 6 hours ago Authorities in Germany, Bulgaria, Serbia, Cyprus Take Down Crypto Scam Network REGULATION | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRising Bitcoin Prices Cause Cascade of Short Liquidations, Highest Ratio of Short vs. Long Wipeouts Since July 2021 Next articleBIS Economists Recommend 3 Crypto Policies for Regulators Worldwide to Adopt Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"

The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto