Gamo Gensler, the current chairman of the Securities and Exchange Commission, issued a warning to password companies and asked them to "enter and abide by the Constitution" after the agency announced an agreement with the password exchange Kraken.

Appeared in CNBC'sAlarm boxOn Feb. 10, Gensler indicated that password exchanges should apply for registration with SEC to comply with US regulations, claiming that many people in the industry "chose" not to do so. According to the current chairman of SEC, the business model of many new password projects is "full of contradictions", saying he needs to "comb" the bundled goods.

"if there is any chance of survival and success in this area, it is to maintain the time-tested systems and laws and regulations of the project investment public," Gensler said. " "you don't have to put the doorknob in the customer's pocket and use your assets on your own software."

Gensler's announcement came after the Securities and Exchange Commission (SEC) announced that it had reached an agreement with Kraken to shut down its betting services and programs to American customers and pay 30 million dollars in refunds, projected interest and civil penalties. Kraken indicated that it would continue to provide betting services based on another branch belonging to non-US customers.

Many people accuse SEC's settlement of being an act taken by regulators against companies that must control the control area without a clear basic policy. Hester Peirce, the SEC committee, called SEC's move "lazy and paternalistic" and called the bet "better based on everyone".