The new chair of the US Securities and Exchange Commission (SEC) wants Congress to legislate more protection for crypto investors.
Gary Gensler, who was sworn in last month, attended a virtual hearing of the US House Committee on Financial Services on Thursday. While there, North Carolina Republican Patrick McHenry asked him about crypto regulation.
Gensler, who says that his views are his own and that he doesn’t speak on behalf of his fellow commissioners or the SEC staff, argues that the nearly $2 trillion crypto asset marketplace could benefit from greater investor protection.
“I do think that working with Congress, and I think it’s only Congress that can really address it, it would be good to consider, if you asked my thoughts… whether to bring greater investor protection to the crypto exchanges.
And I think if that were to be the case – because right now, the exchanges trading in these crypto-assets do not have a regulatory framework either at the SEC or at our sister agency, the Commodity Futures Trading Commission – that could instill greater confidence. Right now there’s not a market regulator around these crypto exchanges, and thus there’s really not protection against fraud or manipulation.”
It’s not the first time he’s expressed that sentiment.
At a Senate confirmation hearing earlier this year, Gensler told lawmakers that Bitcoin and crypto assets are paving the way for a new financial era, and regulators must ensure investors are safe.
As SEC chair, Gensler will have to oversee any cryptocurrencies considered to be securities.
As early as 2018, he stated that there was a “strong case” that XRP is a security, and says Bitcoin doesn’t fall into the same category.
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