Gary Gensler, chairman of the US Securities and Exchange Commission, again urged crypto projects involving securities to register with the regulator to ensure investor protection.
In a testimony to the Senate Banking, Housing, and Urban Development Committee scheduled for Sept. 14, Gensler said the Securities and Exchange Commission (SEC) is working with the Commodity Futures Trading Commission to protect investors in the cryptocurrency market. In addition, he hopes to work with the Federal Reserve, the Treasury Department, the Auditor’s Office, and President Joe Biden’s Financial Markets Working Group to develop a policy framework.
“I suggested that [crypto] SEC chairman said. “Many platforms have tens or hundreds of tokens. While the legal status of any token depends on its facts and circumstances, the chances are pretty slim that if there are 50, 100, or 1,000 tickets on a given platform, there will be no securities.
Gensler added that innovative technologies such as cryptocurrencies could be a “catalyst for change” in the financial sector, but not if they continue to fall outside the limits set by law – which, according to many US crypto companies, is due to a lack of regulatory clarity.
“Insofar as there are securities on these trading platforms, they are required by our law to register with the Commission, unless otherwise, an exception rule comes into consideration.”
Cointelegraph reported in August that Gensler hopes to introduce crypto-related policy changes in the token offering, decentralized funding, stablecoins, custody, exchange-traded funds, and lending platform. He has long urged crypto projects to register with the SEC, explicitly saying they should “join” and work with regulators.
“We do not have sufficient investor protection in crypto financing, issuance, trading, or lending,” said Gensler. “In all fairness, at this point, it’s like the Wild West or the old world of ‘buyers watch out’ that existed before securities laws were enacted. This type of content is filled with scams, scams, and abuse in certain apps. “
Related: Senator Warren questions SEC chairpersons about lack of protection for crypto investors
Gensler will address a full Senate committee hearing on May 14 at 10:00 a.m. EST on banking, housing, and local government issues related to SEC oversight.