‘Highly Speculative’ Cryptocurrencies Aren’t ‘Like Laundry’: SEC Chairman

Soon

  • Gary Gensler again emphasized the importance of regulatory protections for cryptocurrency trading and lending platforms, including decentralized ones.
  • SEC chairman spoke to the European Parliament’s Committee on Economic and Monetary Affairs.

Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), warned today that the regulator is investigating both cryptocurrency trading and lending platforms and stablecoins, which could pose a risk to investors.

Gensler was Envelope before the European Parliament’s Committee on Economic and Monetary Affairs on transatlantic cooperation in the financial services sector.

“Including the platform within an investor protection perimeter is really important,” he said, addressing claims by token promoters that many tokens were useful.

“se tokens are not like a laundry token,” Gensler said, “they are highly speculative investment tokens for people looking to save or speculate for their future, so it makes sense to bring them within reach of investor protection.”

He also claimed that the $ 116 billion stablecoin industry has been “incorporated” into the broader sphere of cryptocurrencies. “I think, in part, that this makes it easier for those who want to seek and evade the goals of host public policies,” he said.

DeFi in the crosshairs of the SEC

“We are very focused on platforms, whether it is a trading or lending platform, most of the market activity takes place on these platforms, both centralized and decentralized. [ones] »Gensler said.

decentralized finance (DeFi), the platforms pose a particular challenge for regulators as investors deal directly with each other, forgoing traditional brokers.

Before his speech to the European Parliament, in an interview with the Financial Times, Gensler argued that DeFi was not “really a new concept,” but a variation on peer-to-peer lending, which has been around since the early 21st century.

While DeFi platforms weren’t centralized like a traditional exchange, he argued that they feature “a fair amount of centralization” in their governance carals, fees, and incentives.

Read Also Bitcoin Rises 15% After Midweek Slump

$ 2 trillion crypto industry has been in the SEC’s sights of late.

growing prominence and profits have attracted greater control over cryptocurrency exchanges. UK’s Financial Conduct Authority said last week that Binance, which has had $ 5 trillion in operations over the past year, has around 13 million customers, but does not have a global headquarters “cannot” be supervised.

Gensler said that if the industry “has any relevance in five to 10 years, it will be within a public policy framework.”

“ story just tells you that it doesn’t last long outside. Ultimately, finances are about trust, “he said.

He also lamented the lack of startups issuing tokens at risk of qualifying as securities that followed his advice to register with the SEC. Rather than working with the regulator, Gensler argued that some startups are “apologizing instead of asking permission” from the SEC.

Too bad today’s laws were written in “an earlier brick and mortar age,” as Gensler himself admits.

Source link

more

Related Posts

© 2024 Cryptocoin Budisma.net