SEC Chair Gary Gensler Turns to Congress to Address Crypto Wild West
SEC Chairman stresses the need for proper checks on crypto exchange platforms, given the volatility and risk factors for investors, making regulations necessary.
Head of the Securities Exchange Commission (SEC) of the US, Gary Gensler, paid a visit to the Congress last Tuesday where he addresses concerns regarding the supervisory authority of SEC on lending and trading commodities, cryptocurrency exchanges platforms.
He quoted the emerging crypto upheaval a “Wild West” which is frequently riddled with the risk of fraud and the diminishing investor attention. Gensler emphasized that the virtual assets market consists of various tokens that are treated as unregistered securities which leads to manipulations including price inflations and a sudden drop in crypto value, ultimately posing a significant risk to investors.
Gensler while addressing a global conference states that,
“This asset class is rife with fraud, scams and abuse in certain applications. We need additional congressional authorities to prevent transactions, products and platforms from falling between regulatory cracks.”
Although cryptocurrencies reached a staggering $2 trillion in April this year with an influx of investors buying digital tokens, the market remains highly volatile and unpredictable. With Gensler taking charge, the crypto landscape is expected to face traditional financial regulations to bring stability to the market.
Kristin Smith, Executive Director at the Washington-based Blockchain Association, acknowledges while the crypto service providers are willing to adopt “workable solutions” regarding SEC’s concerns, it complies with oversight by regulatory authorities and state bodies. She quoted,
“The industry shares many of Chair Gensler’s goals, including smart, appropriate regulation of the crypto industry, encouraging legal certainty, robust market integrity, and investor/customer protection. Where we differ with Chair Gensler is his characterization of the growing crypto economy as the Wild West.”
Gensler stressed that Congress should authorise more autonomy to SEC to make the crypto market regulated and safe for investors.