US Bitcoin Traders Unprotected, Crypto Space To Benefit From More Regulation, Says SEC Chairman Gensler – fr

US Bitcoin Traders Unprotected, Crypto Space To Benefit From More Regulation, Says SEC Chairman Gensler – fr

(Kitco News) There are apparent gaps in the regulatory framework surrounding crypto assets, Securities and Exchange Commission Chairman Gary Gensler said at the House’s third GameStop hearing.

“Our authority is around the securities and asset managers and products that might invest in these cryptocurrencies,” Gensler said during his testimony before the House Financial Services Committee. “Right now, the exchanges that trade these crypto-assets do not have a regulatory framework in either the SEC or the CFTC. There is no market regulator, and therefore there is really no protection against fraud or manipulation. “

Trading Bitcoin on large crypto exchanges is an area that Gensler specifically highlighted as something he would like to work on in the future.

“The SEC currently has a lot of authority in the area of ​​security, and a number of cryptocurrencies fall under that jurisdiction. But there are some areas, especially bitcoin trading on major exchanges, [where] the public is currently not really protected. This would be an area that I would like to highlight, ”he said.

Gensler added that he would be eager to work with Congress on developing investor protection regulations.

“If you are trading bitcoin in America today, there is no investor protection regime that really protects as I think it would be appropriate around these exchanges,” he said at the time. of the audience. “There are things we can do better that we can do at the SEC. But I also look forward to working with Congress if there is a desire to fill in any gaps. Like I said earlier, [those being] crypto exchanges. “

Gensler stressed that it is only up to Congress to initiate regulatory expansion while noting that the $ 2 trillion crypto-asset market will benefit from better investor protection.

“Only Congress could really fix it. It would be good to think about whether to bring more investor protection to crypto exchanges, ”he said. “It could inspire greater confidence [in crypto]. «

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