TL;DR Breakdown
- Gary Gensler set to explain why crypto firms need to register with SEC.
- Gensler worried many crypto firms have listed securities in their trading market.
- SEC chair calls for global collaboration to regulate crypto space.
Chairman of the Securities and Exchange Commission (SEC) Gary Gensler would be explaining why crypto exchanges need to register with the regulators on Tuesday when he appears before the American Senate.
The SEC chairman also would reiterate his thoughts regarding the need for close regulations on the entire crypto industry by the SEC and other bodies.
An opening remark by the Senate banking committee quote Gary Gensler as stating that influx of tokens in different crypto exchanges with the legal status of the coin dependent on criteria of the exchanges.
Gary Gensler’s statement also noted that there are securities in the exchange market, and under the US laws, he explains that the firms have to register under the commission expect they qualify for an exception.
These comments emphasize his stance that the SEC needs to be mandated to have an oversight control over crypto exchanges.
Gary Gensler particular on spot market regulation, investor protection
Two other critical points for the SEC chairman are spots market regulation and protecting crypto investors in the crypto market.
Gensler has been working with Banking Committee members like Senator Elizabeth Warren to expand the SEC’s statutory authority over crypto exchanges.
To this point, Gensler’s remarks note: “Right now, large parts of the field of crypto are sitting astride of — not operating within — regulatory frameworks that protect investors and consumers, guard against illicit activity, and ensure for financial stability. “
Gensler has remained keen at regulating the crypto industry ever since he assumed chairmanship at the SEC. He has met senate members severally to discuss this. Recently, he had a meeting with European Union parliament virtually where he spoke on why they need to work to regulate the crypto space collectively.
He emphasized that crypto is a cross-border technology; hence leaders may have to cooperate for the proper regulation of the space.
