• Fri. Jul 19th, 2024

SEC has authority to crackdown on crypto securities, Gensler says

The SEC chair wants to see cryptocurrency exchanges and brokers register with the agency.

Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC) has once again reaffirmed the agency’s desire to see more crypto companies – exchanges, brokers and so forth – embrace regulation as a step towards consumer protection.

SEC has authority to regulate crypto securities

In a Thursday commentary that Bloomberg reported on, the SEC boss noted that even as they pursue greater involvement and hence accountability from those within the crypto industry, the securities watchdog is already in a position to regulate the space.

According to the regulator, most cryptocurrencies fall under the agency’s regulatory purview by dint of a security’s legal definition. As such, it calls for crypto exchanges, brokers and other providers to embrace compliance.

He said the public within the crypto space deserve to have and enjoy the same protections from crypto issuers as do consumers investing in traditional securities. The comments are not new, with Gensler outlining this same sentiment following the Terra collapse and Three Arrows Capital demise.

He reiterated this perspective in comments that highlighted Bitcoin as a commodity. He repeated the message today as noted by MicroStrategy’s Michael Saylor in a comment shared on Twitter.

The SEC chair also commented on non-compliance and what looks like a reluctance by many to pursue the regulatory goal.

“Not liking the message isn’t the same thing as not receiving it,” the SEC chair said in remarks delivered at a regulatory event in Washington.

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