Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), provided a prepared statement for an upcoming oversight hearing in which he restated his position that the vast majority of crypto tokens need to be categorized as securities.
Gensler noted that the crypto markets are compatible with the rules that govern the securities industry. He also emphasized that it is the role of the SEC to protect investors, regardless of the technology or language that is involved. He stated that average people buy cryptocurrency tokens with the hopes of making money and having a better future, putting their faith in the businesspeople who are behind these tokens.
Gensler: Exchanges have to comply with regulations
The head of the Securities and Exchange Commission (SEC) raised concern over crypto market intermediates, who usually provide a mix of services that are typically considered to be separate from traditional securities markets. Due to the fact that crypto intermediaries perform a diverse range of activities, there is an increased potential for conflicts of interest and hazards for investors.
Gensler argued that designating oneself as a DeFi platform does not excuse one from complying with securities rules and that such noncompliance endangers investors and jeopardizes public faith in the capital markets. He said that such noncompliance endangers investors and jeopardizes public confidence in the capital markets. In addition to addressing artificial intelligence, climate risks, market structures, and money market funds, Gensler noted that he has ordered the SEC staff to create rule suggestions pertaining to AI for the Commission to evaluate. These rule proposals will be presented to the Commission for consideration.
This demonstrates that the SEC is committed to addressing new technologies and the potential effect such technologies may have on the market. The statement made by Gensler demonstrates the SEC’s dedication to maintaining compliance with securities rules inside the cryptocurrency industry. It is anticipated that regulatory monitoring will become more stringent as the sector continues to advance in order to safeguard investors and maintain the integrity of the capital markets.
