Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), explains that there is not enough protection for cryptocurrency investors. He added that securities regulators need more capital and manpower to effectively regulate the crypto sector.
SEC Chairman Gensler Says More Funding Is Needed To Control Crypto Space
SEC Chairman Gary Gensler details the agency’s approach to regulation. cryptocurrencies before the Senate Banking Committee on Tuesday. He assured the senators that the SEC is working overtime to create a regulatory framework for crypto assets.
Noticing the scale of this work He told Senator Catherine Cortez Masto that the SEC could use “a large number of people” to assess 6,000 digital “projects” and determine whether they are securities under U.S. securities laws. He said:
We currently don’t have enough investor protection in crypto finance, issuing, trading or lending. ‘Beware Buyer’ Existed Before Securities Legislation
Senator Pat Toomey, a rating member of the committee, pressured Gensler on whether stablecoins meet the definition of a security. He stressed:
I think we need clarity on this matter. I think you should make this public … and we certainly shouldn’t take enforcement action on someone without first clarifying.
Gensler insists that the rules of “We have investor protection laws in this country … that were set out in the 1930s where Congress wanted to protect the public from fraud and other offenders … I think the law. [on cryptocurrencies] Clearly,” he told CNBC on Wednesday. “The lawsuit, the Supreme Court has weighed several times and many of these tokens are subject to securities law.”
What do you think about SEC Chairman Gary Gensler’s comments? Let us know in the comments section below.
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