Gensler: Crypto firms know exactly how to register, they just don’t want to

In his first public remarks directly on recent SEC enforcement actions, Gensler was having no tolerance for any company who refuses to register

article-image

SEC Chair Gary Gensler | Source: Third Way Think Tank "Gary Gensler" (CC license)

share

SEC Chair Gary Gensler defended his agency’s recent enforcement actions against Binance and Coinbase and issued a stark warning to any other businesses operating in the space: Comply, or you can expect a lawsuit, too. 

Gensler did not mince his words during a virtual appearance at the 2023 Global Exchange and Fintech Conference Thursday, demanding that crypto firms follow existing laws. There is no need for further congressional action, as many in the space have called for, he said. 

“It’s the law of the land,” he said, defending the SEC’s ability to oversee crypto markets. 

Crypto companies have no excuse to not be operating within the rules, Gensler added, dismissing any claims that companies are unable to comply under existing laws. 

“We’ve issued a reopening release that reiterated the applicability of existing rules to platforms that trade crypto assets securities, including so-called DeFi systems, that’s already the law. That’s already the rules,” Gensler said. “Not liking the law, not liking the rules is different than not hearing it or not getting it.” 

There is no ‘regulatory clarity’ needed, Gensler added, arguing that issuers and broker-dealers and exchanges should know exactly how to comply. 

Read more: Gary Gensler Is a National Disgrace: It’s Time to Rein Him In

The SEC head also doubled-down on his long-time stance that crypto markets are ripe for manipulation and fraud.  

“We’ve also seen numerous companies before and after FTX blow themselves up, hurting countless investors in their way, hundreds of thousands, and sometimes millions around the globe,” Gensler said. “The crypto securities markets should not be allowed to undermine the well-earned trust of public capital markets.” 

Days after his agency announced aggressive charges against exchanges Binance and Coinbase, Gensler firmly stood by the lawsuits, alleging the exchanges explicitly and knowingly violated securities laws

“Working alongside law enforcement partners in 10 states, we charge Coinbase for never properly registering the offer and sale of its staking program,” Gensler said. 

Binance faces similar registration and securities offering violations, but the SEC also alleges the exchange commingled client assets and manipulated markets, Gensler added, citing complaints released Monday. 

Companies are “seeking a bunch of meetings with the SEC during which you’re unwilling to make the changes needed to comply with the securities laws,” Gensler said, possibly referring to recent statements from Coinbase and Robinhood stating they have attempted to engage with the SEC but have been unable to register. 

On the day Coinbase’s charges were announced, the exchange’s chief legal officer, Paul Grewal, appeared before the House Agriculture Committee to face questions on crypto market regulation.  

“I am still digesting the complaint that was served today,” Grewal said during the hearing. 

“What I can speak to, in much greater detail, are the many, many interactions we’ve had with the SEC, going back not just months, but several years,” Grewal said, adding that the exchange has spoken with SEC staffers dozens of times.  

It’s not an issue of inadequate guidelines, Gensler countered on Thursday, the exchanges simply do not want to do what they are told.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Bain Capital Crypto and Haun Ventures co-led the round as demand grows for Bitcoin-denominated savings and annuities

by Blockworks /
article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /