Chairman of the US Securities and Exchange Commission (SEC) Gary Gensler is sure that the cryptocurrency market is not particularly different from other financial markets, and it falls completely under the authority of the regulator.
Gary Gensler published an article in the Wall Street Journal in which he outlined his thoughts on how crypto assets should be regulated. In his opinion, regulators, like investors, have no reason to treat the digital asset market differently than other capital markets just because it uses a different technology.
“Recent market developments show why it is important that crypto firms comply with securities laws. In recent months, some crypto lending platforms have frozen their investors’ accounts or gone bankrupt. When it comes to bankruptcy, these investors have to go to court,” writes Gensler.
The head of the SEC emphasized that no matter what a financial product is, it is economic realities that determine whether it is a security. There are other kinds of problems, but Gensler says the SEC can handle them. To do this, crypto companies need to constantly exchange information with the regulator – this will benefit both investors and the entire cryptocurrency market.
“In the meantime, the SEC will act as a regulator. As with seat belts in cars, we need to provide standard investor protection in the cryptocurrency market,” he added.
Earlier, the head of the SEC said that cryptocurrency lenders should be regulated similarly to investment companies.
Source: Bits
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