By George Ward
The crypto community has been abuzz recently after the United States Securities and Exchange Commission (SEC) announced several enforcement actions against crypto-related companies. The SEC has been particularly tough on crypto staking, issuing cease-and-desist letters to some companies offering such services.
Two prominent crypto personalities have weighed in on the subject: Cardano founder Charles Hoskinson and billionaire entrepreneur Mark Cuban. The two have vehemently opposed the SEC’s actions, arguing that the regulator’s approach to crypto is overly harsh and could have severe consequences for the industry.
Hoskinson And Cuban Disapprove Recent SEC Crackdown On Crypto
The Cardano CEO Charles Hoskinson asserted that SEC Chairman Gary Gensler couldn’t wipe out the newly emerging crypto sector. Hoskinson’s remark in response to the query during a recent interview was that he did not think the SEC Chairman had the authority to “destroy” the crypto industry.
Hoskinson further indicated he did not believe Gensler had the power to demolish the sector. Similarly, in response to the recent SEC crackdown on crypto staking services, Cuban pointed out that such activities bear similarities to stock loan programs.
He opined that registering these transactions with the SEC is not necessarily required. The comments from Hoskinson and Cuban come at a time when the crypto industry is facing increased scrutiny from regulators worldwide.
The SEC’s actions will encourage other regulators to take a similar stance, which could have severe consequences for the crypto industry.
Coinbase Sets The Stage For Courtroom Showdown With SEC
The Securities and Exchange Commission (SEC) has been on the end of harsh criticism regarding its determination to forbid crypto staking programs in the United States. Consequently, Kraken, a well-known cryptocurrency exchange, consented to pay a penalty of $30M and discontinue its staking service to settle claims initiated by the SEC.
However, reports indicate that the San Francisco crypto exchange, Coinbase, stated that Kraken’s staking system differs from theirs and does not qualify as securities. Furthermore, Coinbase announced that stablecoins do not count as securities. The leading American crypto exchange also indicated its willingness to challenge the SEC in court if it disagrees.