SEC Chairman Says Crypto Should Be Treated Same as Other Capital Markets – Regulation Bitcoin News

Gary Gensler, Chairman of the SEC says there’s no reason to make crypto markets different from other capital market. Noting that “the SEC will serve as the cop on the beat,” Gensler encouraged crypto trading and lending platforms “to come in and talk to SEC staff.”

SEC Chairman Gensler discusses Crypto Regulation

Gary Gensler is the chairman of U.S. Securities and Exchange Commission. He published an opinion piece Friday in Wall Street Journal about regulation for crypto assets. He described:

There’s no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology.

“Recent market events show why it is critical that crypto firms comply with securities laws,” Gensler explained. “In recent months, some crypto lending platforms have frozen their investors’ accounts or gone bankrupt. When it comes to bankruptcy, these investors have to get in line at the court.”

SEC Chief stressed the importance of any financial product, regardless of whether it’s an app, lending platform or crypto exchange.

Across decades of cases, the Supreme Court has made clear that the economic realities of a product — not the labels — determine whether it is a security under the securities laws.

While acknowledging that “There are costs of complying with securities laws, just as there are costs to car makers of adding seat belts,” the SEC chairman pointed out that “there is a path forward.”

Gensler then reiterated that he encourages crypto trading and lending platforms “to come in and talk to SEC staff,” emphasizing that “Getting these platforms into compliance with the securities laws will benefit investors and the crypto market.” The SEC chief concluded:

The SEC will be acting as the watchdog. The SEC will continue to be the cop on the beat, as with car seatbelts. We must ensure investor protections are standard in the cryptocurrency market.

Gensler recently explained what you can expect from SEC regarding crypto regulation. Gensler has come under fire for his enforcement-centric approach in regulating crypto markets. He also stated that bitcoin was a commodity but that most crypto tokens are securities. This led to him being criticized for his enforcement-centric approach.

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Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.