Gary Gensler, the new chairman of the US Securities and Exchange Commission (SEC), is urging the agency to bring cryptocurrency ventures under the law. In a recent speech, Gensler said that many cryptocurrency assets are potentially securities, and therefore should be regulated accordingly. This push for greater regulatory oversight comes amid concerns about the use of cryptocurrency for illegal activities and its potential impact on financial stability. Gensler’s stance reflects a broader trend among regulators worldwide, who are increasingly seeking to rein in the wild west of cryptocurrency trading.
The Chair of the US Securities & Exchange Commission, Gary Gensler, has emphasized the need to bring all cryptocurrency ventures under legal scrutiny. The objective is to protect investors and the market by enforcing legal bounds on crypto ventures. The traditional centralized market has been challenged by decentralized cryptocurrency, which promotes trusting exchange platforms with invested funds. However, non-compliance and lack of disclosure can lead to investors losing money, especially as many crypto ventures have gone bankrupt in recent months. Exchange platforms often avoid SEC boundaries, and lending and staking services can be categorized under securities law. Inventors and markets come under the security provided by crypto ventures, and their tokens come under the compliance of laws governing securities exchange. Platforms involved in lending and staking fall under the umbrella of securities law. The SEC also requires ventures to share the account of assets they are holding, and investors must let go of control over their assets. The proposal is that assets invested with advisors should be custodied with qualified custodians. The SEC is clear that cryptos listed must be registered, and platforms must disclose the required information.