After the regulatory thriller that took place in the EU Parliament in the last few weeks, the US Securities and Exchange Commission (SEC) is now shifting up a gear when it comes to regulation. Speaking at the Penn Law Capital Markets Association Annual Conference, Gary Gensler, head of the agency, reiterated that crypto firms are likely to trade in securities — which thus fall under the SEC’s regulatory purview. It is also to be examined whether crypto investors should enjoy the same protection as all other investors:
These crypto platforms play similar roles as the traditional regulated exchanges. Therefore, investors should be protected in the same way.
Gary Gensler, Source: SEC
Gensler was particularly critical of stablecoins in his presentation. The entire stablecoin market raises concerns about its use for illegal activities. Crypto transactions, Gensler said, allowed users to bypass the traditional banking system, making it harder to track money laundering, taxes, and compliance.