SEC Chairman Gensler emphasized the anti-crypto stance and forces exchanges to register

Securities and Exchange Commission (SEC) Chairman Gary Gensler spoke again about the unregulated cryptocurrency sector. This time, Chairman Gensler emphasized his long-standing demand that cryptocurrency platforms register with the Wall Street regulator. 

Gensler took to Twitter with an exclusive video explaining how cryptocurrency exchanges are a threat to consumer protection, and further asked them to register under the Securities Act. He also asked commission officials to work with these platforms in an effort to regulate them similar to stock exchanges. He further noted that the SEC is also in the process of examining certain coins that should be registered as securities.

Emphasizing that there is a basic legal framework in capital markets that ensures market integrity and protects against fraud and manipulation, Gensler argued that "there is no reason to treat the crypto market differently just because a different technology is used." In his tweet, he further suggested that if a company builds a crypto market that protects investors and meets the standards of market regulations, people are likely to have more confidence in that market.

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Gensler claims new crypto legislation could threaten the $100 trillion capital market

Last month, after the U.S. cryptocurrency legislation was finally released, Gesler raised concerns about its pro-crypto nature, arguing that it would be detrimental to the $100 trillion capital market. Gensler criticized a new bill that proposed to entrust the Commodity Futures Trading Commission (CFTC) with oversight of crypto spot markets as well as futures.

Gensler with the proposed bill did not agree and noted, “We don't want to undermine the protections we have in the $100 trillion capital market. You don't want our current stock exchanges, our current mutual funds, our current public companies to sort of casually say, You know what, I want to break the rules too. I want to be out of a regime that I think has been quite beneficial for investors and economic growth over the last 90 years."

Gensler further reiterated his prevailing securities argument that majority crypto tokens fall under securities law. He said that so far the SEC is not considering expanding its jurisdiction, but these tokens are offered to the public and the public hopes for a better future. This is a characteristic of an investment contract, which is a type of security.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.