Gary Gensler is the chair of the United States Securities and Exchange Commission. He stated that the protections offered by the agency to investors in traditional assets should be extended to crypto market investors.
Gensler stated that he had asked the SEC staff to look into getting crypto platforms registered and subject to the same regulatory framework like exchanges in prepared remarks. The chair of the SEC stated that the agency could work towards regulatory clarity in crypto by considering how to register platforms where the trading in securities and nonsecurities is intertwined. Also, Gensler suggested that retail crypto investors should have the same protections and rights as traditional market traders.
Gensler stated that while crypto may provide new opportunities for entrepreneurs to raise capital or for investors to trade, it still requires market and investor protection. We already have strong ways to protect investors who trade on platforms. We also have strong ways to protect investors when entrepreneurs raise funds from the public. These protections should be applied to crypto markets.
At our @pennlaw Conference on the Future of Digital Assets, I am honored to be the Chair @GaryGensler of the #SECGov Join me: https://t.co/[email protected] @Penn @PennMedicine @PennEngineers #web3 #crypto #digitalassets #blockchain #nfts #cbdcs pic.twitter.com/ly5AJmuohY
— Sarah Hammer (@FinanceHammer) April 1, 2022
The chair of the SEC stated that his staff would investigate whether it would be appropriate to segregate custody. This would seem to separate the registration regimes for platforms that offer custody from those that do not.
“There is no reason to treat crypto markets differently because of the use of different technology.”
Related: Crypto sector under scrutiny: US regulators examine cryptocurrency
Gensler repeatedly encouraged crypto projects that have securities to register with the SEC to protect investors in a “come in and speak to us” approach. Many cryptocurrency firms have criticised the lack of clarity in US regulation. This can be subject to interpretation by agencies such as the SEC, Commodity Futures Trading Commission and Financial Crimes Enforcement Network.