With cryptocurrency becoming more and more popular and the government not being able to do anything about it, it seems like someone is trying to put regulations for crypto exchanges. Although it is true that cryptocurrency can be used for dangerous purposes due to its anonymity, the parameters around regulations defeat the purposeful anonymity that cryptocurrency provides which is one of its core features.
SEC Chairman Wants to Provide ‘Investor Protection’
According to CoinBase, a certain SEC Chairman Gary Gensler recently stated that the massive $2 trillion cryptocurrency market actually needs more investor protection in the United States. Gensler gave a statement in his first public hearing ever since taking the reins at the said agency saying there is no protection around manipulation or fraud.
Aside from needing more investor protection, the SEC Chairman also noted that it would need possible regulations for crypto exchanges. During his first public hearing ever since he had become the head of the particular federal securities regulator, Gensler noted that the SEC’s authority is actually restricted to securities and products or even asset managers that could invest in cryptocurrencies.
Should Congress Regulate Crypto?
The SEC Chairman Gensler noted that he suggested Congress could potentially take a huge role in bringing greater regulatory clarity focused particularly around exchanges. He noted that as of the moment, these exchanges do not really have a regulatory framework at the SEC or even at their sister agency, the official Commodity Futures Trading Commission.
He also noted that as of the moment, there is not a certain market regulator around the particular crypto exchanges and thus there is reportedly really no protection around both manipulation or fraud. Gensler also did not really specify what regulations around crypto exchanges could actually look like.
How Far Should the SEC Go?
His comments reportedly came in response to a particular question regarding digital assets coming from Rep. Patrick McHenry or R-N.C. He also touched on a particular proposed rulemaking for custody. He also notes that he hopes the SEC chair will move forward.
McHenry, who reportedly sponsored a certain bill that addresses how the SEC as well as the CFTC could divvy up oversight of crypto, then asked how Gensler might improve the regulatory clarity focused around digital assets. Gensler reportedly did not address crypto in his particular pre-written opening remarks.
Read Also: Warren Buffett ‘Alright’ with Vice Chairman Saying He’s ‘Disgusted’ With Cryptocurrency Success
Gensler on ‘Malicious Actors’
Gensler instead focused on aspects of the whole GameStop pump as well as other recent market events which include the collapse of Archegos Capital. The new SEC chair reportedly did speak generally about social media and technology’s role in the public stock market.
Gensler noted that technology can actually bring greater access to their capital markets. He then mentioned the whole role of online communities just like Reddit in boosting the total stock prices. He then stated that he was actually not interested in curtailing free speech. Gensler, however, noted that he is interested in actually seeing whether malicious actors really took advantage of the communities in order to manipulate the markets.
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Written by Urian B.
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