The U.S. Securities and Exchange Commission chairman, Gary Gensler, has insisted on bright-line regulations for cryptocurrency to protect investors in the country. In an interview with Bloomberg, he announced that he urged Congress to pass laws that would give the SEC power to oversee crypto activities.
Gensler explains that strict regulations are necessary because the crypto market, valued at $1.6 trillion, is unregulated and is causing problems for policymakers. The policymakers have not been able to respond to the unstable growth and prices, and he is concerned about the number of people rushing into crypto. Therefore, he believes that the easiest way for the government to manage digital token trading would be to regulate crypto exchanges.
He stated that:
“If somebody wants to speculate, that’s their choice, but we have a role as a nation to protect those investors against fraud.”
According to Gensler, the SEC would investigate at least seven crypto-related issues. The seven issues include lending platforms, decentralized finance (DeFi), stablecoins, initial coin offerings, ETFs, trading venues, and custody.
Gary Gensler is not alone in this fight. He has support from Senator Elizabeth Warren and other members of Congress who are all encouraging the SEC to adopt strict cryptocurrency policies.
Although the chairman is eager to apply these regulations to the crypto market, the commission may not be considering crypto regulations at the moment. The SEC may push crypto-related decisions back as it is currently dealing with several other policy matters unrelated to crypto.
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