- Gary Gensler SEC chair meets European lawmakers on crypto regulation.
- Gensler says crypo exchange firms need regulation to stay relevant.
- Lawmakers, Regulators worried about crypto retail investors.
Gary Gensler, Chairman of the American Security and Exchange Commission (SEC), has appeared before European legislators over the need for a collaborative effort to ensure proper crypto regulation.
He appeared virtually before the European Parliament on Wednesday to “exchange views.” The SEC chairman explained that financial technologies continue to break borders hence integrating European and American markets.
While speaking, he said the crypto market is indeed global. He said it has no borders, and it operates 24/7 emphasizing the need for collaboration to regulate the market.
The SEC chair also spoke on technologies that could be applied with crypto exchanges to help regulators properly protect investors. He was asked to speak on it by Billy Kelleher, a member of the parliament from Ireland. Gary Gensler noted that there are technologies to help stop platforms on anti-money laundering and ensuring investor protection.
Gary Gensler says crypto firms need regulation to survive
While speaking in another forum (interview with financial times) also on Wednesday, Gary Gensler explained that cryptocurrency platforms have become so large that they need to embrace regulation or risk losing public trust.
He states that crypto can only remain relevant in five or ten years if it’s within a public policy framework, especially with its continued price surge.
Gary Gensler said his focus is on crypto trading platforms, where 95 percent of activities in the crypto space take place.
Regulators and cryptocurrencies
Lawmakers and regulators continue to express worry and fear regarding cryptocurrencies, especially its highly volatile mature and increasing value, which has topped $2 trillion. They express these concerns for retail investors who are too many in the market and institutions already joining the frenzy.
However, both lawmakers and regulators are yet to fine-tune who exactly would regulate the market. Primarily, regulators see crypto as a commodity compared to security.
However, Gensler has said many crypto tokens are securities and has called for Congress to give the SEC more powers to govern the market.