Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), said cryptocurrency “would not end well if it was out of regulatory space.” The SEC has been criticized for adopting an application-centric approach to controlling the crypto industry.
The SEC chairman says staying out of crypto regulations will not end well
SEC chairman Gary Gensler spoke about cryptocurrency regulation on Monday during an interview with former federal prosecutor Preet Bharara at a code conference in Beverly Hills, California.
He explained that the crypto sector in the United States has many “trading venues and placements” with “not just dozens, but hundreds and sometimes thousands of tokens.” The SEC chairman warned that “allowing cryptocurrency markets to operate outside the control of regulators would hurt the people”.
It will not end well if it is out of control.
“The sector that has grown 10-fold in the last 18 months-not just in terms of asset value, but underlying nding and much more-is going to stay out of this public policy framework and succeed,” he continued. “We’ll end up with a problem and a lot of people will be injured.”
In August, Gensler said the cryptocurrency sector was not going to reach any of its possibilities if it tried to stay outside the SEC’s rules. Last week, former U.S. Treasury Secretary Larry Summers also said that cryptocurrency would be better regulated rather than treated like a paradise of freedom.
At a Senate Banking Committee hearing last week, the SEC chairman said several tokens were listed on several cryptocurrency platforms, including Nasdaq-listed Coinbase, and stressed that some of them needed to be secured. He added that the SEC needs more manpower and money to better control the crypto sector.
“Currently, we do not have adequate investor protection in the areas of crypto finance, issues, trading or nding,” he said, claiming that the crypto industry was like the old world of “wild waste” or “buyer caution” that existed before securities legislation.
However, some people, including SEC Commissioner Hester Pierce, have criticized the SEC for adopting an application-centric approach to crypto regulation. Last week, Senator Pat Tommy wrote a letter to Gensler asking for clarification on crypto control.
What do you think of SEC Chairman Gary Gensler’s comments on crypto? Let us know in the comments section below.
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