SEC Chairman Calls on Congress to Develop Investor Protection Framework for Crypto Exchanges

Newly appointed SEC Chairman Gary Gensler believes there are loopholes in the regulation of exchange bitcoin trading, and he is calling on Congress to make some key decisions regarding cryptocurrency regulation.

SEC Chairman Calls on Congress to Develop Investor Protection Framework for Crypto Exchanges

Newly appointed Securities and Exchange Commission (SEC) Chairman Gary Gensler sees loopholes in the regulation of bitcoin trading on exchanges, and at a May 6 hearing of the House Financial Services Committee hearing on May 6, he called on Congress to make some key decisions regarding cryptocurrency regulation.

Gensler commented, “This crypto asset market, with a market cap approaching $2 trillion, could benefit from better investor protection. I think only Congress can really address this issue and would do well to consider whether to bring greater investor protections to cryptocurrency exchanges. Currently, there is no regulatory framework in the SEC or CFTC for trading on these exchanges. There is currently no market regulator around these cryptocurrency exchanges, so there are effectively no protections against fraud or manipulation.”

In April of this year, Gary Gensler was sworn in as chairman of the SEC, and Gensler said that as SEC chairman, he will have ample opportunity to develop regulations for the cryptocurrency industry or determine how existing regulations should be applied. The crypto community has been following Gensler’s tenure at the SEC with great interest, largely because his resume contains broader crypto experience than his predecessor.

Notably, Gensler noted during his time as a candidate, “Bitcoin and other cryptocurrencies bring new ideas to payments and financial inclusion, but they also raise new investor protection issues that we still need to focus on. If confirmed as SEC chairman, I will work with other commissioners to promote new innovations while also keeping investor protection at the core. At the same time, he noted that rooting out fraud in the cryptocurrency market is a challenge.

However, crypto mom Hester Peirce, a U.S. SEC commissioner, noted that she is looking forward to a U.S. SEC led by Gary Gensler, who also said that with Gensler at the helm of the SEC, cryptocurrencies could see “a very productive few years.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/sec-chairman-calls-on-congress-to-develop-investor-protection-framework-for-crypto-exchanges/
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