Suing the exchange is not enough! SEC Chairman Hits Coin Circle Again: There's No Need for More Digital Currencies

After the cryptocurrency exchange, the US Securities and Exchange Commission (SEC) has dealt another blow to the currency industry.

On Tuesday, June 6th Eastern Time, SEC Chairman Gary Gensler hinted in a media program that digital tokens such as cryptocurrencies are not essentially necessary in this world. Gensler said:

We don't need more digital currencies. We already have digital currencies. They are called dollars, euros, or yen. They are all digital now. We have digital investments

Gensler's statement comes just after the SEC announced lawsuits against two major cryptocurrency exchanges.

On Monday, the SEC officially sued the world's largest cryptocurrency exchange, Coin An, and its CEO, Zhao Changpeng, for violating US securities regulations, accusing them of engaging in widespread fraud, conflicts of interest, lack of disclosure, and deliberate evasion of the law by selling Coin An and Stable Coin BUSD without registration.

Earlier on Tuesday, the SEC announced a lawsuit against Coinbase, the largest cryptocurrency exchange in the United States, for violating securities regulations, accusing Coinbase of allowing users to trade cryptocurrencies that are essentially unregistered securities, disregarding securities law regulations and evading relevant information requirements.

At the end of March this year, Coinbase received a notice from the SEC warning that it would take enforcement action against the platform for violating investor protection laws.

Wall Street has mentioned that the Chairman of the SEC, Gensler, has repeatedly stated that many of the tokens and products provided by cryptocurrency companies are securities, and trading platforms need to be registered with the SEC. According to media reports, representatives of Coinbase have met with the SEC more than 60 times in the past nine months to try to resolve these issues, but have not achieved any results.

On Tuesday, Gensler also mentioned to the media the difference between cryptocurrency exchanges and traditional exchanges, stating that "these self proclaimed trading platforms are mixing multiple functions. In the traditional financial field, we cannot see the New York Stock Exchange operating like hedge fund market making

Gensler admitted that the delay in litigation against the cryptocurrency platform was due to the "time required to follow the rules" and pointed out that investors should believe that the SEC is paying attention to risks in the digital currency field.

He said that US securities laws benefit the investing public and should not be different from cryptocurrencies. These platforms and intermediaries are required to comply with regulations.

On Tuesday, Coinbase's stock price plummeted in double digits, dropping nearly 21% at the beginning of the trading day. However, the afternoon decline narrowed to within 15% and is still set to hit a new closing low since January this year.