- SEC Chair Gary Gensler states that he will work to get crypto registered and regulated.
- In a Twitter post, Gensler explains why crypto needs to be regulated.
- There is no reason to treat the crypto market differently just because a different technology is used,” argues the executive.
SEC Chair Gary Gensler stated yesterday that he will work to get crypto platforms registered and regulated, and will ensure that crypto tokens register where appropriate as securities. He shared his views on the topic through a Twitter post.
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
Gensler begins his Twitter video by illustrating the history of trading. “When you trade on a stock market, you have certain protections.” The reason for this, Gensler explains, is that back in the 1920s the securities market was rife with fraud and manipulation on the exchanges.
“Over the generations, the US capital markets have become the gold standard because investors have faith in them,” says Gensler. “They are not perfect. But they have stood the test of time.”
Connecting the history of stock markets to crypto platforms, Gensler argues that crypto platforms, like stock markets, bring together buyers and sellers. He adds that these platforms often have tens of millions of retail customers directly buying on the platform without going through a broker. With so many retail customers trading on crypto platforms, the Chair believes that regulators should make sure that those platforms offer similar protections.
I’ve asked our staff to work directly with the [crypto] platforms to get them registered and regulated to ensure those crypto tokens come in as well and register where appropriate as securities.
Addressing crypto investors, Gensler promises that he will strive to best ensure that user assets are protected. “There is no reason to treat the crypto market differently just because a different technology is used. That would be like saying drivers of electric cars don’t need seatbelts because they don’t use gas.”