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

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

SEC Chairman Gary Gensler says 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 cryptocurrency trading and lending platforms “to come and talk to SEC staff.”

SEC Chairman Gensler on Crypto Regulation

The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, authored an opinion piece published in Friday’s Wall Street Journal on how crypto assets should be regulated. he described:

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

“Recent market events show why it is 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. When it comes to bankruptcy, these investors have to line up in court.”

The head of the SEC emphasized that regardless of what the financial product is, whether it is an application, a lending platform, a crypto exchange or a decentralized financial (defi) platform:

In decades of cases, the Supreme Court has made clear that the economic reality of a product—not the label—determines whether it is a security under the securities laws.

Acknowledging that “there are costs to complying with securities laws, just as there are costs to automakers to add seat belts,” the SEC chairman pointed out that “there is a way forward.”

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

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

Gensler recently stated what to expect from the SEC on crypto regulation. He was strong criticized for taking an approach focused on enforcing the regulation of the crypto market. That’s what the head of the SEC said bitcoin is a commoditymost crypto tokens have attributes of securities, 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.

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

Kevin Helms

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




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v3.2″;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Leave a Reply