Gemini and Ripple executives criticise the SEC’s approach to regulating the crypto industry

During a panel discussion at Token 2049, Ripple’s Europe managing director Sandy Young and Blair Holliday, head of Gemini’s UK division, agreed that the SEC’s approach to regulating the digital-asset industry is unclear. Decrypt reports.

“You have two extremes: a direct ban in China and El Salvador, which has recognised Bitcoin as legal tender. Then there is the US approach — regulation through coercion,” Young noted.

She added that countries such as Japan, Singapore and the United Kingdom are doing a better job of this task, creating regulatory frameworks that provide regulatory clarity.

Mary Beth Buchanan, chief legal officer of the analytics platform Merkle Science, agreed with Young.

“I remember back in 2014 in New York I participated in a discussion, and we couldn’t reach a consensus on what cryptocurrency is — property, income, or commodity? I think in the US we have advanced only a little further. We still lack clear regulation that exists in other parts of the world,” she said.

SEC Chair Gary Gensler disagrees with this statement. Testifying before Congress on October 5, he said that the agency does not plan to ban cryptocurrencies. He also noted that the Commission has the authority necessary to regulate the digital-asset market, and securities laws “are quite clear”.

Unlike the US, participants in the discussion spoke positively about the UK regulatory regime. According to Holliday, FCA “made it very clear” that a license is a “privilege and a gift,” and that companies must continually work on building trusting relationships with regulators.

In 2020, the FCA added two Gemini subsidiaries to the register of accredited companies: Gemini Europe Ltd and Gemini Europe Services Ltd. The former handles financial settlements, the latter custody of cryptocurrencies and platform operations.

Meanwhile, Binance clashed with the regulator. In June 2021, the FCA banned the company’s local unit from any regulated activity without prior written approval from the agency.

Earlier in September, Ripple chief Brad Garlinghouse accused the SEC of inaction regarding cryptocurrency regulation.

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