SEC Chairman Says Crypto Should Be Treated Same As Other Capital Markets – Regulation Bitcoin News

SEC Chairman Gary Gensler said there is no need to treat the crypto market any differently than other capital markets. Noting that “the SEC will serve as a beat cop,” Gensler encouraged crypto trading and lending platforms “to come in and talk to SEC staff.”

SEC Chairman Gensler on Crypto Regulation

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler wrote an op-ed for the Wall Street Journal on Friday on how crypto assets should be regulated. He described:

There is no reason to treat the crypto market any differently than the rest of the capital markets just because it uses different technology.

“Recent market events show why it’s critical for crypto firms to comply with securities laws,” Gensler explained. “In recent months, some crypto lending platforms have frozen their investors’ accounts or gone bankrupt. In the event of bankruptcy, these investors must line up in court.

The SEC chief pointed out that regardless of the financial product, be it an app, lending platform, crypto exchange, or decentralized finance (defi) platform:

Over decades of cases, the Supreme Court has made it clear that a product’s economic realities — not labels — determine whether it is a security under securities laws.

While acknowledging that “there are costs to complying with securities laws, just as there are costs to automakers for adding seat belts,” the SEC Chairman pointed out that ”there is a way forward”.

Gensler then reiterated that he encourages crypto trading and lending platforms “to come in and talk to SEC staff,” pointing out that “bringing these platforms into compliance with securities laws will benefit investors.” and the crypto market”. The SEC chief concluded:

In the meantime, the SEC will serve as a cop on the beat. As with seat belts in cars, we need to ensure that investor protection is standard in the crypto market.

Gensler recently explained what to expect from the SEC on crypto regulation. It has been heavily criticized for taking a law enforcement-centric approach to regulating the crypto market. The SEC boss also said that although bitcoin is a commodity, most crypto tokens have securities attributes, warning that many of them will fail.

What do you think of SEC Chairman Gary Gensler’s comments? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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