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The Chairman of the US Securities and Exchange Commission Gary Gensler called on Congress to give his agency additional powers to protect investors in the “Wild West” cryptocurrency markets, which are “full of fraud, scams, and abuse.”
Gensler delivered a speech at the Aspen Security Forum on Tuesday. At that time, the U.S. authorities were scrambling to deal with the explosive growth of the crypto market. He said that the crypto market is worth about $1.6 trillion, of which more than 75 tokens are worth at least 1 billion. Dollar.
Gensler stated that in addition to being used for ransomware attacks or “bypassing our anti-money laundering, sanctions, [and] tax”.
He suggested treating them as “Highly speculative “Store of value” gives regulators the responsibility to protect investors in asset classes.
“Now… we just don’t have enough investor protection [in crypto],” he said. “Frankly, it’s more like the Wild West at this time. .. This asset class is rife with fraud, scams, and abuse in some applications. “
Gensler added: “There is a lot of hype and rotation about how crypto assets operate. In many cases, investors cannot obtain strict, balanced and complete information… If we do not solve these problems, I am worried that many people will be harmed. .”
Gensler vowed that the U.S. Securities and Exchange Commission will act in accordance with its existing powers to supervise crypto assets that can be defined as securities under U.S. law.He said that platforms that trade such securities “must be registered [with the SEC] Unless they meet some kind of exemption.”
“Whether it is a stock token, a stable value token backed by securities, or any other virtual product that provides comprehensive exposure to the underlying securities,” he said in a prepared comment. “These products are subject to securities laws and must operate within our securities system.”
However, Gensler said that Congress still needs to take action to give the SEC additional powers to protect investors when the rules on crypto assets are not clear.
“There are some gaps in this area,” he said. “We need more congressional authorization to prevent transactions, products and platforms from falling into regulatory loopholes. I also think we need more resources.”
Gensler stated that the “legislative priority” should be to establish clear rules of the road for platforms engaged in crypto trading or lending and decentralized finance, or TelfordA generation. “Regulators will benefit from additional authorization in this area.”
Gensler claims to be “technology-neutral” from a policy perspective. In his speech, he pointed out that he teaches cryptocurrency courses at the Massachusetts Institute of Technology.
He said that he believes that despite “a lot of hype” in the crypto space, “it has and may continue to be a catalyst for changes in the financial and monetary fields.”
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