Decentralized fund (DeFi) has also found itself in the SEC’s regulatory crosshairs, since these types of platforms“raise a number of challenges for investors and the SEC staff trying to shield them,“ he said.The testimony would indicate that Gensler, who was sworn into office last April, aims to seek cooperation with other authorities and lawmakers to impose stricter regulations of their crypto markets – contrary to what the Cryptoverse had expected from the supposedly’pro-crypto‘ brand new SEC pioneer – and is still another indication of his distrust of cryptocurrencies. – Can’t Beat Crypto Regulators? Educate Them
– India Will Regulate Crypto as Ban Discuss Binned – ReportBefore this month, Gensler said that bitcoin (BTC) was a speculative and volatile store of value, but the cryptocurrency does not fall under the SEC’s jurisdiction, since it’s thought to be a commodity and not a safety. There’s another issue stemming from the coins being traded around unregistered crypto markets, “ he argued. Commenting about the value of the worldwide crypto assets market, Gensler said that while the reported trading volume in recent weeks has ranged from USD 130bn to USD 330bn daily, these figures are not audited or reported on regulatory authorities because the exchanges are not registered together.
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Gensler added that the SEC is“seeking comment on crypto custody agreements by broker-dealers.“ From the crypto area, the most notable recent guide record was that of major crypto exchange Coinbase. Among the most famous, long, and continuing struggles with the SEC seen by the Cryptoworld is that between the regulator and blockchain firm Ripple over the SEC’s claim that the Ripple-affiliated XRP coin is an unregistered security.Meanwhile, the Gensler also noticed that an increase in private companies accessing public markets via direct listings, noting that the SEC has declared lately record guidelines filed by exchanges for main direct listings, where companies can market shares directly on exchanges without a traditional underwritten public offering. „This might be an important mechanism that calls upon SEC resources,“ he said.Learn more:
– Crypto Community Asks Who’s Next As SEC Hits Decentralized LBRY
– US Congress Now Aims At Decentralized Services TooBut he also stated that“a lot of crypto tokens — that I will not call them cryptocurrencies for this instant — are indeed securities.““The SEC has been constant in its communication to market participants that individuals who use first coin offerings to raise funds or to engage in securities transactions must comply with the federal securities legislation. Asset managers that invest in these assets might come under securities legislation, too,“ Gensler said, adding that there were lots of“challenges and gaps for investor protection in these markets.“Given that none of those crypto exchanges has to date enrolled as an exchange with the SEC, its Chair claimed the regulation has led to“substantially less investor protection“ than in the traditional securities markets, as well as to“correspondingly greater chances for fraud and manipulation“ – leading the SEC to prioritize“token-related cases involving fraud or other significant injury to investors.““That is just one of many regulatory gaps in these crypto asset markets,“ he said.The regulatory tsar made the remarks in his recent testimony before the Subcommittee on Financial Services and General Government of the Appropriations Committee at the US House of Representatives, the lower part of the nation’s parliament, where he reiterated his view that cryptocurrencies really are a“highly volatile and speculative asset category,“ and many tokens are investment contracts that fall under the nation’s securities law.
Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), told US lawmakers he wishes to work with other regulatory agencies and the Congress to“fill in the gaps of investor protection in these crypto markets,“ indicating that the SEC may soon develop tighter regulations to the sector.
– Settlement Is Most Likely Outcome in Ripple vs. SEC Case – Attorney
Source: a movie screenshot, Youtube/Bloomberg Markets and Finance
Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), told US lawmakers he wishes to work with other regulatory agencies and the Congress to“fill in the gaps of investor protection in these crypto markets,“ indicating that the SEC may soon develop tighter regulations to its sector.
