The new chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, is pushing for more regulation of cryptocurrency exchanges, citing the need to protect investors in this area. He asked Congress for a decision.
SEC chairman calls for more crypto regulation
SEC Chairman Gary Gensler spoke on cryptocurrency regulation on Thursday at a Financial Industry Regulatory Authority (FINRA) conference. FINRA is a government authorized not-for-profit organization that oversees US brokers.
“At the SEC, our focus is on prosecuting wrongdoing wherever we find them in the financial system,” Gensler began. “This means holding individuals and businesses accountable, without fear or favor, for the roughly $ 100,000 billion of capital markets we oversee.”
On cryptocurrency regulation, the new SEC chairman stressed the need for greater investor protection. Stressing that he would like to see more regulation around cryptocurrency exchanges, including those that only trade bitcoin and are currently not required to register with the SEC, he asserted:
This is a fairly volatile asset class, one could say very volatile, and the investing public would benefit from greater investor protection on crypto exchanges.
Gensler explained that “there is no authority to register and write rules to protect the investing public” with respect to crypto exchanges, reiterating that “the investing public would benefit from greater regulation” in this area. .
The SEC chairman also revealed that he had asked Congress to look into the matter.
He also clarified that crypto tokens issued in the same way as traditional investment tokens fall under the jurisdiction of the SEC, noting that the agency has taken about six dozen enforcement actions against those who offer securities not. recorded. “And there are hundreds of tokens out there, so we will continue with the review and application to do what we can in this space,” he said. According to independent research, the SEC has so far taken about 75 enforcement actions against the crypto industry.
In addition, Gensler highlighted the need for the SEC to update its rules regarding the marketing of cryptocurrency and its use, including through gaming features on mobile apps offered by retail brokers, robo-advisers. and wealth management companies.
“We have to do everything we can to make sure that bad actors do not play with the savings of working families and that the rules are enforced aggressively and consistently,” Gensler said. “Individual accountability is an important part of any law enforcement program. I think we should continue to seek bars and similar measures, where appropriate, to protect the public. The SEC chairman said:
Technology is constantly evolving, and so are our markets. As we continue to keep abreast of these developments, the SEC and FINRA should be prepared to carry cases involving issues such as crypto, cyber, and fintech.
Do you think cryptocurrency exchanges need more regulation? Let us know in the comments section below.
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