Gurbir Grewal, who joined the SEC in July, gave an interview to Reuters and delivered the message that his agency will not go too soft on cryptocurrency companies.

"We can't ignore multi-billion dollar loan products."

Grewal said that the SEC, which is often criticized for not having a clear position on laws and rules for cryptocurrency companies, will show clearer management under the "new democratic leadership," with Grewal using the following statement.

"Our message to cryptocurrency companies will not be 'you register your product with us, we'll ignore your multi-billion dollar lending product, and we won't penalize you for all your violations'"

"Not much."

Many companies in the cryptocurrency industry had hoped for a form of governance where they would not be penalized if they complained to the SEC about any violations, but Grewal said such an issue was not on the table.

"Of course, if they come to us, we will look at them more positively. We provide guidance on how to impose fines and how to comply with the securities laws. If a company comes to us and reports a violation and cooperates with us, that's the benefit the company gets. Not much."

Coinbase CEO Armstrong responds

Coinbase, which is considered the largest stock exchange in the United States, is known to have petitioned the SEC to see if its loan product, LEND, was considered a security. Armstrong said they were unable to get a clear answer from the agency and withdrew the product. Coinbase's CEO reacted very harshly to the SEC on Twitter, saying, "They didn't even give me an appointment for a meeting."

BlockFi has also received warnings from some states to stop its lending products. Earlier this month, the U.S. Securities and Exchange Commission even charged BlockFi subsidiaries with securities law violations for their lending products. BlockFi Lending LLC had to pay a record $100 million fine.

Before becoming SEC chairman in April 2021, Gary Gensler, the blockchain technology lecturer behind cryptocurrencies at MIT, now describes the industry as the "Wild West" that poses serious risks to investors, and gets a response.

No Amnesty but Lighter Penalties for Cryptocurrency Firms Admitting to SEC Violations appeared first on Bitcoin News – Uzmancoin – Cryptocurrency and Blockchain.