The chairman of the US Securities and Exchange Commission (SEC) said that the agency will work with government agencies to protect crypto investors.
Gary Gensler issued a statement shortly after U.S. President Joe Biden issued an executive order to develop digital assets and develop regulations. The decree is aimed at protecting investors when working with cryptocurrencies, as well as preventing the use of digital assets in illegal transactions. Gensler assured on Twitter that the SEC will work with other government agencies to implement the presidential directive.
As for the White House, one of the priorities of the regulator was to protect investors from fraud and manipulation in the cryptocurrency market. Gensler clarified that he does not intend to impede the development of the cryptocurrency space, but clarified that “loyal attitude towards crypto assets” will not prevent him from seeking tougher oversight of the industry:
“I look forward to working with government colleagues to achieve important public policy goals: to protect users from illegal crypto-currency activities and ensure financial stability.”
The Chairman of the SEC believes that by the end of 2022, it is necessary to introduce additional monitoring of platforms trading in cryptoassets. This will better protect investors investing in bitcoin and other cryptocurrencies. The agency is also exploring various options for protecting clients of cryptocurrency platforms. If trading platforms and crypto companies do not enter the regulated space this year, Gensler said, clients will remain exposed to the risks of losing funds for another year. In February, Gensler revealed that the SEC had already begun working with crypto exchanges on this issue.
However, not all of its employees agree with the actions of the SEC. For example, JW Verret, a member of the SEC advisory board, believes that the agency misinterprets the Howey test, so even those tokens that are not considered securities are at risk.
Source: Bits
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