Chairman of the US Securities and Exchange Commission (SEC) Gary Gensler said that the crisis in the crypto market made it possible to decide on a “mixed” type of regulation of cryptocurrencies.
In an interview with TV Balance of Power, Gary Gensler stated that trading and lending platforms that have raised money and failed in some cases fall under “the classic parts of securities laws.”
The difficulty lies in the fact that there are too many platforms that do not comply with the law and are not properly registered. Gensler believes the crisis that many crypto lenders and exchanges have recently faced has shed light on the type of regulation the industry needs right now.
According to him, “it’s a mixture”, including cooperation with market participants and the processing of some investor protection tools. Gensler noted that the SEC should be “technologically neutral” while still protecting the public.
If the cryptocurrency continues to develop, more trust in the system will be required. Thus, tightening regulation is possible, although the SEC is already using “a lot of laws that have been in place for decades.”
Gensler warned that many tokens have the trappings of promotional activities and fundraising from the public, and promised that the SEC “will continue to take strong enforcement action.”
Gensler’s rhetoric is often aimed at protecting investors. Recently, the chairman of the SEC urged cryptocurrency lending platforms to provide customers with complete and accurate information.
Source: Bits
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