US SEC Chairman Gary Gensler Reiterates His Call For Cryptocurrency Platforms
Today, before the hearing of the “U.S.-Banking-Committee” on the omission of the SEC (Securities-and-Exchange-Commission), Gary Gensler (the chairman of the SEC) repeated his invitation for the projects and platforms of cryptocurrency that own securities pending to be registered with the commission. In arranged statements, the chairman focused on the issues due to the lack of protection of the investors in the industry of crypto.
Presently, he stated, the industry does not have sufficient investor protection regarding crypto finance, trading, lending, or issuance. He added that currently, it is to a great extent similar to the past realm of “buyer-beware” enacted when securities laws did not exist. Gensler noted that the asset class of cryptocurrency is overwhelmed with scams, abuse, and fraud in certain dimensions. He further mentioned that he had already proposed for the projects and platforms to talk with the regulatory authority. Several platforms contain dozens of tokens and sometimes hundreds, although the legal status of each token is determined by its unique characteristics and circumstances.
He said that it is quite remote a chance that despite having more than 1,000 or 50,100 tokens, the platforms have null securities. Therefore, the platforms should not make any mistake in considering that securities do exist on them. Under the laws of the agency, they are bound to get registered with the SEC without the case of an exemption. The securities department is collaborating with CFTC (Commodity-Futures-Trading-Commission) to enhance the protection of crypto investors. The other agencies are also being kept intact such as the Treasury Department, “Office-of-the-Comptroller-of-the-Currency,” Federal Reserve, as well as other participants of the working-Group-on-Financial-Markets for constructing policy frameworks relating to crypto.
The CEO and founder of Avanti-Financial-Group, Caitlin Long, revealed via a tweet that the tone of the chairman is adverse even further than his former remarks. The industry of cryptocurrency under the United States has constantly been going through mounting regulatory scrutiny. The comments of Gensler come after the department’s cautionary notice to Coinbase (the biggest exchange of cryptocurrency, concerning the trading volume, in the United States, being listed by Nasdaq) over its Lend product for making crypto savings of a high yield. It was because the product included security as per the agency. It has been reported that the securities department is examining Uniswap Labs, which is the developer at the back of a decentralized exchange called Uniswap.