SEC Chairman Gary Gensler says there is no need to treat the cryptocurrency market any differently than other capital markets. Noting that “the SEC will serve as a cop in the field“Gary Gensler Encouraged Crypto Exchange and Lending Platforms”to come talk to SEC staff.“
SEC Chairman Gary Gensler on cryptocurrency regulation.
United States Securities Commission (SEC) Chairman Gary Gensler wrote an article published Friday in The Wall Street Journal on how cryptoassets should be regulated. He described:
There is no reason to treat the crypto market any differently than the rest of the financial markets just because it uses different technology.
“Recent Market Events Show Why It’s Critical For Crypto Companies To Comply With Securities Laws“, explained Gary Gensler. “In recent months, some crypto lending platforms have frozen their investors’ accounts or gone bankrupt. In the event of bankruptcy, these investors must line up in court.”
The SEC boss pointed out that whatever the financial product, be it an app, a lending platform, a cryptocurrency exchange or a decentralized finance platform ( challenge) :
Through decades of cases, the Supreme Court has made it clear that the economic realities of a product — not the labels — determine whether it is a security under securities laws.
While acknowledging thatthere are costs for complying with securities laws, just as there are costs for automakers to add seat belts“, the chairman of the SEC pointed out that”there is a way forward“.
Gary Gensler then reiterated that he encourages cryptocurrency exchange and lending platforms “to come talk to SEC staff“, emphasizing that “Bringing these platforms into compliance with securities laws will benefit investors and the cryptocurrency market.The SEC chief concluded:
In the meantime, the SEC will play the role of cop on patrol. As with seat belts in cars, we need to ensure that investor protections are standard in the cryptocurrency market.
Gary Gensler recently outlined what to expect from the SEC when it comes to cryptocurrency regulation. It has been heavily criticized for taking a law enforcement-centric approach to regulating the crypto market. The SEC boss also said that while bitcoin is a commodity, most crypto-tokens have securities attributes, warning that many will fail.