As the crypto market in the America and globally continues to absorb the implications of the US SEC’s rampant exchange targeting, we sourced some more expert takes – this time from Independent Reserve exchange boss Adrian Przelozny.

For context, over the past couple of days, the world’s two biggest crypto exchanges by trading volume – Binance and Coinbase – have both come under the securities-violations crosshairs of Sheriff Gary Gensler and his SEC posse in the United States.

You can read further about those similar-but-slightly-different matters in our coverage over the past 24 hours here, here and here.


Disappointing to see such an ‘adversarial approach’

Hi Adrian. Thanks for the chat. So, crypto’s arch enemy (seemingly) – Gary Gensler’s SEC – is ramping things up again. What’s your take on it all? Have things suddenly become even more concerning for the crypto industry in the US? 

Adrian Przelonzy: The fact is, many players in the industry, including Coinbase, have for a long time been vocal about the need for a clear regulatory framework for cryptocurrency exchanges and we have seen the industry gravitate to jurisdictions where this has been put in place, such as Singapore and Hong Kong.

So I think it’s disappointing to see the SEC take an adversarial approach and try to regulate by enforcement rather than create a set of rules in consultation with the industry.


‘The end result will be middle ground’

Do you believe the global crypto market can weather this storm of scrutiny and US regulatory lawsuits and eventually just come through okay on the other side? 

Crypto is here to stay and it looks like we are in for a protracted legal battle between US regulators and exchanges. The end result will likely be a middle ground which will hopefully bring about more regulatory clarity.

Are there any obvious key negatives/positives for crypto investors to take away from these latest developments?

The silver lining of these actions by the SEC is that one way or another we will reach a place of greater regulatory clarity, which we at Independent Reserve have been advocating for a long time – way back since we began operating in the market 10 years ago.

Ultimately, this will bring about greater mainstream and institutional adoption in the digital asset space, which is good for all.

In the meantime, though, do you think this will be a catalyst for more US-based crypto entities to pack up and leave the US? 

The crypto industry is mobile and the US is not looking like a favourable jurisdiction in the short term future. It would be of no surprise to see US crypto companies look for a new home in “friendlier” countries around Asia and Europe.


‘Australia is on the right path’

How do you think the industry here in Australia might be affected by these developments in the US? Binance Australia has run into some banking roadblocks here. Is that a concern for other local exchanges? 

We have always advocated for clear regulatory guidelines in Australia that protect consumers and that has been the case for many years, across multiple governments. 

We are working closely with Treasury in the current industry consultation process and are confident that Australia is on the right path towards sensible crypto regulation in the coming 18 months.

This will be good for consumers, operators and all involved in the industry.


Founded in 2013, Independent Reserve is one of Australia’s oldest and most respected crypto exchanges. Independent Reserve is not a Stockhead advertiser and this is not a sponsored piece.