- Gary Gensler has also said USA is not planning to ban crypto like China.
- Gensler harps on need to regulate crypto and protect investors.
Chairman of the Security Exchange Commission (SEC) Gary Gensler has aligned himself with chairman of the Federal Reserve, Jerome Powell, that the United State does not intend to place a ban on cryptocurrency like China.
Gary Gensler said this on Tuesday at the House Financial Services Committee hearing. He revealed that the SEC has no plan to impose or enforce any ban on crypto. He said that would be up to the congress.
During Tuesday’s four-hour hearing, Gensler fielded questions about cryptocurrency, stablecoins, the regulation of exchanges, and decentralized finance (DeFi).
Maxine Waters, a congresswoman who chaired the committee, however, expressed concerns of crypto assets. She noted that the SEC has been faced with historic challenges after the growth of unregistered and volatile cryptocurrency assets and the emergence of cryptocurrency intermediaries, market exchanges, and decentralized protocols.
Regulation, Regulation, Regulation – Gary Gensler
Gary Gensler mostly reiterated his previous thoughts on crypto regulation, including the need for exchanges to “come in and register” with the SEC, the potential systemic risk posed by stablecoins and the need for them to be subject to increased regulation, and that “most” cryptocurrencies fall under the definition of a security.
When asked by Rep. Jim Himes (D-Conn.) to provide “guidance” on the topic of crypto regulation, Gensler reiterated his previous position that crypto exchanges need to register with the SEC but added that decentralized exchanges (DEXs) would also be subject to regulations.
“Even in decentralized platforms – so-called DeFi platforms – there is a centralized protocol. And though they don’t take custody in the same way [as centralized exchanges], I think those are the places that we can get the maximum amount of public policy.”
For Gensler, it’s all about the need to regulate the crypto industry and protect investors.