SEC Chair criticizes Crypto industry once again. “there’s no reason to treat the crypto market differently [to the securities market] just because a different technology is used” the SEC chair points out.
Calls For Crypto Regulation
In a recent video tweeted out from his official Twitter account, the U.S. Securities and Exchange Commission (SEC) Chair, Gary Gensler, criticized the crypto market for its lack of regulation and once again pushed for more crypto platforms to register with the Wall Street regulator.
We have rules in our capital markets to safeguard market integrity & protect against fraud & manipulation. If a company builds a crypto market that protects investors & meets the standard of our market regulations, people will more likely have greater confidence in that market. pic.twitter.com/ZxdBfvmqXP
— Gary Gensler (@GaryGensler) July 28, 2022
In his video, Gensler pointed out that crypto platforms are a threat to consumer protection and because of this, all crypto platforms including crypto exchanges and crypto lending platforms should register under securities law.
“I’ve asked our staff to work directly with [crypto] platforms to get them registered and regulated much like securities exchanges, and to ensure that those crypto tokens come in as well and register where appropriate, as securities,” Gensler stated.
The SEC chair also criticized exchanges for not having a proper regulatory framework to protect investors’ deposits, claiming that investors are “literally handing over the keys to your crypto,”
“Just imagine this, imagine handing over all of your stock to the New York Stock Exchange. That would never fly.” Gensler says.
The SEC vs Crypto
Gensler’s comments came only a few days after the SEC reportedly launched an investigation on cryptocurrency exchange platform Coinbase for allegedly trading unregistered securities.
This isn’t the first time the SEC or Gensler have criticized cryptocurrency and the crypto market. Gensler has often criticized the lack of crypto regulations many times before, urging crypto platforms to register the crypto as securities. In an appearance with CNBC earlier this July, the SEC chair also made some statements on his views of cryptocurrency.
“I’m neutral about the technology but I’m not about the investor protection. These are a highly speculative asset class,” he says, “There are thousands of tokens, most of which have attributes of securities.“