Gary Gensler has reiterated the SEC’s consistent approach regarding the importance of enforcing crypto regulations. In his opinion, the crypto space’s technology, business model, or entity should not determine how the crypto regulations can be enforced.
What Determines Regulation Flouting
Gensler cited the examples of terminologies such as peer-to-peer lending, DeFi, and currency and stated that their application would determine whether they are flouting crypto regulation rules. While speaking on high-impact cases, Gensler made a slight reference to the ongoing SEC-Ripple court case.
He opined that such cases are important because they send a crucial warning to the market community, triggering a behavioral change. The SEC chief stated that he prefers to call it “enforcement” instead of the “regulation by enforcement,” which most people prefer to call it.
Two US Congressmen Urge The SEC To Approve A BTC Spot ETF
During the week, Congressmen Tom Emmer and Darren Soto sent a letter to the SEC urging it to approve a BTC spot ETF. Part of the letter questioned the rationale behind SEC’s approval of a derivatives-based BTC ETF without a BTC spot ETF. The pair opined that the derivatives-based BTC ETF offers investors lesser protection than BTC spot ETF.
They further said that since the contracts roll over monthly and BTC futures are always at a premium, these approved ETFs could charge investors higher fees. The congressmen also argued that the SEC not approving both ETFs may subject the BTC market to fraud and manipulation. They even said that there would be less pressure on the SEC since the regulation would be applicable to both types of ETFs.
Constant Power Shortages Might Hasten Kazakhstan’s Crypto Regulation Enforcement
Kazakhstan president, Kassym-Jomart Tokayev, has accused the country’s energy ministry of failing in their duties as there has been intermittent electricity supply in the country recently. However, the energy ministry has revealed a detailed plan on how it intends to combat this problem, including a prediction of how it intends to generate power from several sources like hydroelectricity and other renewable sources.
China’s crackdown on crypto miners had forced miners to settle in the central Asian country in a move that has skyrocketed the country’s low electricity consumption. Various metrics show that the influx of miners is attributed to the 8% rise in electricity consumption since the beginning of the year. The energy minister, Magzum Mirzagaliev, also said they had revealed their plans to the president on how it intends to identify and punish unlicensed miners in the country.
A government released statistics reveal that these unlicensed miners consume at least 1,200 MW of electricity monthly. The authorities have disclosed that all ministries must collaborate to identify these culprits. But the energy minister revealed that licensed miners would not face any sanction relating to their activities.
He opined that the country’s electricity sources are enough to cater to their electricity needs and that of the citizens without any issue. The comments from the energy minister might delay the legislature’s new proposal of crypto farms’ registration in each state.