SEC Chairman Gary Gensler said cryptocurrency platforms need regulation. Otherwise, they risk losing people’s trust.
In an interview with the Financial Times, the chairman of the US Securities and Exchange Commission (SEC) acknowledged that cryptoasset trading is becoming more and more popular. Cryptocurrency exchanges have evolved to the point that they shouldn’t flout regulation or they could lose user confidence, slowing down the development of the cryptocurrency industry.
“The capitalization of the cryptocurrency market has already exceeded $ 2 trillion. If this market will be of any importance after five or ten years, it will be within the framework of state policy. The cryptocurrency industry is about finance, and finance is about trust, ”Gensler said.
He said he was disappointed with the industry’s reaction to his calls for crypto platforms to register with the SEC. Many cryptocurrency firms could operate more efficiently if they worked with regulators, Gensler said. However, the situation is complicated by confusion over who should control the market: the SEC or the US Commodity Futures Trading Commission (CFTC). For example, if the SEC determines that a digital asset is not considered a security, then the CFTC may authorize the launch of futures on that asset.
The SEC has repeatedly stated that bitcoin is not a security and is more like a commodity. At the same time, the department classifies many digital assets as securities, as happened with the XRP cryptocurrency of the Ripple company, with which the litigation is still ongoing.
“We are ready for an open dialogue with cryptocurrency firms, just come to us and talk. However, it seems that the platforms seem to be asking for forgiveness and not asking permission, ”Gensler added.
Indeed, in recent years, more and more cryptocurrency platforms are realizing the need for cooperation with regulatory bodies. This week, FTX CEO Sam Bankman-Fried urged crypto-asset firms to get more serious about building relationships with regulators. Binance CEO Changpeng Zhao is also convinced that oversight of the cryptocurrency industry will protect the interests of users.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
