The SEC can exempt crypto companies from some laws to help with compliance, says chairman Gensler
(Kitco News) Gary Gensler, chairman of the US Securities and Exchange Commission, said he could bend some laws for cryptocurrencies to encourage compliance.
Wall Street’s top governor said it has that authority.
“We have robust congressional authorities to use our exceptional authorities that we can tailor” in terms of disclosure and investor protection, Gensler told Yahoo! Finance on Thursday.
Gensler added that a similar method is used when dealing with compliance issues for securities and share offers. “Just as there is a difference between securities with securities support and a stock offer, there can also be differences here,” he said.
The comments come as the crypto market continues to suffer from contagion risk after the massive sale that led to $ 2 trillion being wiped out of crypto’s total market value since it reached a record high last year.
The interview also provided some insight into Gensler’s thoughts behind the scenes around the future of cryptocurrency space regulation.
The SEC leader once again asked crypto companies to come forward and begin the compliance process. Many companies in the area remain “incompatible,” he added.
“There is a potential way forward. I have said to the industry, to the lending platforms, to the trading platforms: ‘Come in, talk to us,'” Gensler said. … basic protection and whether you buy a cryptocurrency or a security as stocks or a security as a securities-backed security, these basic disclosures. “
After the Terra blockchain collapse in May, the risk of infection has brought many crypto borrowers to their knees. The latest company to file for Chapter 11 bankruptcy is Celsius Network.
The crypto lender gave high returns to customers who deposited their cryptocurrency. As of June, Celsius was able to raise more than $ 20 billion in assets by offering an 18% return to depositors.
Gensler said the scheme was unrealistic when asked about these high returns. “If it’s too good to be true, then maybe it is. There can be many risks involved.”
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