How far will he go?

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The Securities and Exchange Commission (SEC), led by Chairman Gary Gensler, has been at the forefront of the crackdown on cryptocurrency in the United States. In recent months, the agency has filed several lawsuits against major crypto companies that allegedly violated security laws.

Critics say the agency took a regulation-by-app approach without providing an appropriate set of rules that fit the unique characteristics of crypto assets. A major source of confusion is the definition of a security and its applicability to a very diverse set of assets such as cryptocurrencies.

Despite being pressured during a congressional hearing last week, Gensler appears unwilling to take the political responsibility to engage in constructive dialogue with the industry.

For many crypto companies targeted by the SEC, the choice is between engaging in a costly legal battle with the regulator or shutting down operations in the United States and moving overseas. Most crypto companies will probably prefer to save millions of dollars in legal fees and go with the latter option.

For more on how the SEC waged the war on crypto and the potential consequences, check out the latest Cointelegraph report on our YouTube channel, and don’t forget to subscribe!

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