Cameron Winklevoss, a co-founder of Gemini, a U.S.-based cryptocurrency exchange, criticized the U.S. Securities and Exchange Commission’s (SEC) posture regarding cryptocurrency regulation. Winklevoss stated that the SEC laws written in 1933 are obsolete today, and their application would mean that the crypto industry will leave the U.S. behind.
Cameron Winklevoss Believes SEC Securities Laws Are Too Outdated to Deal With Crypto
Cameron Winklevoss, a co-founder of Gemini, a U.S.-based cryptocurrency exchange, has criticized the U.S. Securities and Exchange Commission’s application of the Securities Act of 1933 in cryptocurrency cases.
According to Winklevoss, the Securities Act, written in 1933 and still commonly used to determine if an asset constitutes a security at any given time, is outdated and not workable in today’s crypto paradigm.
Everyone including the SEC knows that securities laws written in 1933 don’t meet the realities of the world today. There are two choices: Update the law taking a first principles approach or be left behind.
Furthermore, Winklevoss compared regular mail with email, remarking on the differences between the two and how equivalent regulation would have slowed down the internet’s development and adoption.
On taking the same approach with crypto, he declared:
You can’t pretend that crypto is an orange grove and expect it to flourish. Unless of course, your goal is to kill it.
The SEC filed a complaint against Gemini in January, alleging the exchange engaged in an unregistered offer and sale of securities to U.S. retail investors. The case involves Genesis, a cryptocurrency lender that filed for bankruptcy in January.
Pushing the Industry Away From the U.S.
Winklevoss joins a group of cryptocurrency entrepreneurs and lawmakers that have repeatedly warned against the effects that the recent barrage of legal actions against exchanges like Coinbase and Binance will have on the future of the industry in the country.
He explained what he thinks the industry will go through if the SEC doesn’t change its enforcement approach. Winklevoss explained:
What does being left behind mean? Industry moves offshore. Brain drain. Lost jobs. Lost economic growth. National security risk. U.S. does not participate in developing future financial rails.
Brian Armstrong, CEO of Coinbase, has also declared that the direction in which regulation is going in the U.S. might drive innovation offshore while other countries like China are embracing crypto and blockchain.
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