SEC Chairman Gensler Reiterates Anti-Crypto Stance, Pushes Exchanges to Register
US Securities and Exchange Commission (SEC) Chairman Gary Gensler took another dig at the unregulated crypto industry. This time, Chairman Gensler reiterated his long-standing argument about how crypto exchange platforms can register with the Wall Street regulator.
Gensler took to Twitter with an exclusive video, in which he explained how cryptocurrency exchanges are a threat to consumer protection, and further sought them to register under the Securities Act. He asked commission officials to work with these platforms in an effort to regulate them much like stock exchanges. Furthermore, he noted that the SEC is also in the process of having certain coins specifically registered as securities.
While stressing that capital markets have an underlying legal framework that safeguards market integrity and protects against fraud and manipulation, Gensler argued that “there is no reason to treat the crypto market differently just because a different technology is used”. He further suggested in his tweet that if a company builds a crypto market that protects investors and meets the standard of market regulations, people are more likely to have more confidence in that market.
Gensler claims that new crypto legislation could threaten the $100 trillion capital market
Last month, after the bipartisan crypto bill legislation finally came out in the US, Gesler raised concerns about its pro-crypto nature, arguing that it will be detrimental to the $100 trillion capital market. The new bill, which proposed to transfer oversight of both crypto spot markets and futures under the jurisdiction of the Commodity Futures Trading Commission (CFTC), was criticized by Gensler.
Gensler disagreed with the proposed bill, noting – “we don’t want to undermine the protections we have in a $100 trillion capital market. You don’t want our current stock exchanges, our current mutual funds, our current public companies [to] sort of casually say with a stroke of the pen, “You know what, I want to be non-compliant too. I want to be outside the regime which I believe has been a great benefit to investors and economic growth over the last 90 years”.
Gensler further reiterated his prevailing securities argument about majority crypto tokens falling under securities law. He said, although the SEC does not want to expand its jurisdiction, “but these tokens are offered to the public, and the public hopes for a better future. It is the characteristics of an investment contract,” a type of security.
