SEC boss Gary Gensler warns crypto exchanges2 min read
What is the SEC’s position on cryptocurrencies? Gary Gensler said on Wednesday according to Bloomberg that he sees a need for action on crypto exchanges to be more directly regulated by Washington’s financial regulators – so far, so to be expected. He believes the additional control is crucial in order for crypto investors to have the same level of protection as when trading stocks or other assets.
I have asked the staff to explore all options to bring these platforms into the investor protection space. If the trading platforms don’t get into the regulated realm, the public would be defenseless for another year.
, said the SEC boss on the subject.
Gensler is better known for its hard crypto course
Gensler’s comparison of crypto assets with conventional assets is far from well received in the scene. Last December he said his agency was open to working with the platforms. However, Gensler added that crypto exchanges could face “enforcement action” if they failed to comply with the regulator’s rules.
Several statements have earned Gensler a reputation as a hardliner, at least when it comes to crypto market regulation. The SEC chairman often spoke of the “wild west” of the financial world. Some of his harshest comments concerned the platforms on which coins are traded. This immediately drew the ire of industry executives. In September, Brian Armstrong, CEO of Coinbase, the regulator accused of “half-baked behavior” and “intimidation tactics”.
The SEC had previously announced that it would sue the company. The dispute between Ripple and the SEC, which has been smoldering for more than a year, is almost legendary. Insiders, however, expect a verdict this spring.
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