SEC Chair Gary Gensler Firmly Defends Crypto Investments

Key Points:

• SEC Chair Gary Gensler stressed that the cryptocurrency industry cannot thrive long-term without robust investor protections.
• Gensler reaffirmed that Bitcoin is not classified as a security, which marks a significant milestone for the sector.

In an interview with CNBC’s Squawk Box, Gary Gensler, Chairman of the U.S. Securities and Exchange Commission, said robust investor protection is a prerequisite if the crypto industry is to realize its full potential in the long term.

Read more: SEC Chair Gary Gensler Still Defends Positive View on Blockchain

SEC Chair Gary Gensler Pushes for More Investor Protection in Crypto

SEC Chair Gary Gensler, for his part, said that while digital assets like Bitcoin have good technology, the range of investments might need to expand to provide more stability on markets and better protect investors.

Gensler also stated that Bitcoin was not a security claim he has made on numerous occasions amid the continued fight over how to regulate cryptocurrency assets.

The clarification comes in the wake of the approval by the SEC this year of the first crypto-based ETF in the United States, driven by big players such as BlackRock. This, after a similar number of futile attempts, saw over 20 applications being rejected since 2018.

Critics Lash Out at SEC’s Enforcement Tactics

The SEC’s regulatory approach has irked many in the crypto sector who feel that an overregulatory heavy hand is being wheeled out. Gensler made a point to underscore that market integrity, and investor protection against fraud and manipulation, are at the core of the SEC’s role.

But SEC Chair Gary Gensler came under fire during a recent House Financial Services Committee hearing, where SEC Commissioner Hester Peirce panned the agency’s recent move to pull back the term “crypto asset security” in court, arguing that should have been done a long time ago.

The world of cryptocurrency regulations continues to be very contentious, with Gensler accusing crypto companies of evading long-established rules that have protected retail investors. He has emphasized compulsorily disclosed data on firms raising money from the public as a means of fostering transparency and preventing potential scams in the fast-changing market.