Gary Gensler, chair of the Securities and Exchange Commission (SEC), says that the crypto markets should be regulated the same way traditional securities are.
In a new episode of the Office Hours video series, Gensler explains how the US stock market and crypto exchange platforms are alike, and thus should offer similar consumer protections.
“These platforms, the crypto platforms, like stock markets, bring together buyers and sellers. Crypto platforms have millions, sometimes tens of millions of retail customers directly buying and selling on the platform without going through a broker.
With so many retail customers trading on crypto platforms, we should make sure those platforms offer similar protections. So I’ve asked our staff to work directly with the platforms to get them registered and regulation to ensure that those crypto tokens come in as well and register where appropriate as a security.”
Gensler goes on to say that the market-making aspect of crypto exchanges should be regulated out of existence as it creates conflicts of interest.
“Crypto trading platforms also may act as market makers. It means that when you sell your tokens, one of the platforms may actually be buying on the other side. Stock exchanges don’t do this. They don’t serve as their own market makers because that creates inherent conflicts of interest.
Thus again I’ve asked staff whether it would be appropriate to segregate out the market-making functions of these crypto platforms.”
Gensler then says that there’s no reason for crypto assets to be treated differently than securities when it comes to regulations.
“There’s no reason to treat the crypto market differently just because a different technology is used. That would be like saying to drivers of electric cars don’t need seatbelts because they don’t use gas.”
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxWe have rules in our capital markets to safeguard market integrity & protect against fraud & manipulation. If a company builds a crypto market that protects investors & meets the standard of our market regulations, people will more likely have greater confidence in that market. pic.twitter.com/ZxdBfvmqXP
— Gary Gensler (@GaryGensler) July 28, 2022
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/NextMarsMedia/S4RT4 Design
