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U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has released a video explaining how the agency plans to regulate cryptocurrency exchanges. We asked our staff to work directly with the platform to register and regulate it, he said.
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler released a video on Thursday explaining how securities regulators plan to regulate cryptocurrency exchanges and protect investors. Did.
In a video, Gensler explained the similarities and differences between cryptocurrency trading platforms and traditional exchanges such as the New York Stock Exchange (NYSE). There is certain protection when trading on the stock market, he began, adding that investors are protected against fraud, manipulation, execution, etc.
Noting that crypto platforms serve millions, sometimes tens of millions, of retail customers who buy and sell crypto assets directly without going through a broker, the SEC chair said: detailed in. These platforms offer protection similar to traditional security platforms. he added:
As such, I have asked my staff to work directly with the platform on registration and regulation to ensure that those crypto tokens are introduced as well and registered as securities where appropriate.
“Imagine delivering all your stock to the New York Stock Exchange, and it never flies,” he reiterated.
Gensler then raised another risk factor inherent in crypto exchanges. Unlike traditional stock exchanges, cryptocurrency trading platforms may also act as market makers, he explained. When you sell a token, one of the platforms may actually be buying it on the other side, stressed the SEC chairman, detailing:
Stock exchanges do not do this. Stock exchanges do not act as their own market makers because of their inherent conflicts of interest.
Again, we have asked staff to consider whether it is appropriate to separate market-making functions on these crypto platforms, he said.
In conclusion, the SEC Chairman emphasized that: It’s like saying that electric car drivers don’t need seatbelts because they don’t use gasoline.
He also tweeted on Thursday. If companies protect their investors and build a crypto market that meets the standards of market regulation, people are more likely to have greater trust in that market.
Gensler’s video received some criticism on Twitter. Some have accused Gensler of spending time and resources promoting himself instead of doing the job of regulating the crypto sector. Others have accused the SEC of using an enforcement-centric approach to regulating crypto assets.
Rep. Bill Heizenga (R-MI) tweeted to Gensler.
No exchange wants to “go in and register” without knowing what their market regulations are.
regulator last week Paid A former Coinbase employee in an insider trading case cited nine crypto tokens as securities in the process.
What do you think of SEC Chairman Gary Gensler’s video on regulation of cryptocurrency exchanges? Let us know in the comments section below.
image credit: Shutterstock, PIXTA, Wikicommons
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