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The SEC chair wants to regulate cryptocurrency companies.
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Cryptocurrency Market Compatible With Securities Laws, According To Gensler
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The volatile and non-compliant nature of the market puts investors at risk, he added.
Gensler calls for crypto regulation
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler told the U.S. Treasury Department’s Financial Stability Oversight Council (FSOC) that it is important to regulate cryptocurrency companies.
According to the SEC chairman, regulating cryptocurrency issuers and intermediaries will ensure that investors are adequately protected.His speech comes as a recent hearing FTX Collapse it continues. said Gensler.
“There is nothing about the crypto market that is incompatible with securities law. However, the risks from this speculative and volatile market put investors at risk. This is why it is so important to bring the compliance of the We must remain vigilant.”
SEC chair endorses FSOC report
On Friday, the Financial Stability Oversight Council unanimously approved its 2022 annual report.While commenting on this latest cryptocurrency newsGensler said he supports the report.
A US Treasury Department report wants regulators to enforce existing rules on cryptocurrency companies. said Gensler.
“The Council emphasizes the importance of institutions continuing to enforce existing rules and regulations that apply to the crypto ecosystem.”
The report recognizes that there are some differences between traditional financial markets and cryptocurrency markets. For this reason, the Council recommended the following:
“Enactment of legislation providing for the rule-making powers of federal financial regulators regarding spot markets for crypto assets that are not securities. We do not have a framework for , so we need to take steps to address regulatory arbitrage.”
Gensler’s comments come days after two US senators, including Elizabeth Warren, introduced a bipartisan bill seeking to regulate the cryptocurrency market. Titled the “Digital Asset Anti-Money Laundering Act,” the bill is seen by some in the industry as the most direct attack on the personal freedoms and privacy of crypto users and developers.