The SEC chairman said it was necessary to strengthen control over cryptocurrencies, especially over the DeFi industry, to protect the interests of investors.
According to Bloomberg, this week the chairman of the US Securities and Exchange Commission (SEC) Gary Gensler spoke at the Aspen Security Forum, where he raised concerns about insufficient protections for investors in cryptocurrencies.
“While I’m technology neutral and even intrigued – I’ve spent three years studying and teaching it – I’m not neutral about investor protection,” Gensler said. “If someone wants to speculate, it is their choice, but we, as a state, must protect these investors from fraud.”
He noted that technology has driven economic progress throughout human history, and he sees similar growth driven by digital assets. However, this is only possible with strict and thoughtful regulation.
Gensler said the SEC is currently working on at least seven initiatives that address issues related to initial offerings of tokens (ICOs), cryptocurrency trading platforms, lending platforms, decentralized finance (DeFi), stablecoins, crypto custody, and ETFs for Bitcoin and other cryptocurrencies.
“I have asked the SEC staff to use all our powers wherever we can,” he said.
Regulating cryptocurrency exchanges is the easiest way for governments to quickly take control of digital asset trading, Gensler said. He is concerned about the emergence of new DeFi platforms, which have become another tool for new investors to enter the market.
If such platforms advertise a specific percentage yield on a cryptoasset, this could lead to loans being subject to SEC supervision. In his opinion, the cryptoasset pool managers of the DeFi platform can be viewed as mutual funds, potentially allowing the SEC to regulate them.
Earlier this month, in a speech to the American Bar Association, Gensler recalled that tokenized securities need to be regulated.
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