SEC Chairman: Cryptocurrency trading platforms need to be regulated to protect investors

US Securities and Exchange Commission (SEC) Chairman Gary Gensler spoke about cryptocurrency regulation and the SEC’s priorities during a virtual press conference on Wednesday (Jan. 19).

SEC Chairman

Gary Gensler – Chairman of the SEC

Gensler expects crypto trading platforms to take steps to become more directly regulated in the coming months. He stressed that additional oversight of crypto trading platforms is crucial for crypto investors to have the same protections as trading stocks or regulated financial instruments.

“I asked staff to explore ways to integrate these platforms into the governance structure. Whenever crypto trading platforms are unregulated, investors take on an additional risk.”

Gensler has repeatedly expressed the need to control cryptocurrency trading platforms. He believes many of them trade stocks without registration. In May of last year, he said that crypto exchanges need more regulation and urged Congress to consider it.

“We do not have adequate investor protection in the financial sector that issues, trades or lends cryptocurrencies. Honestly, at this point it’s like the Wild West, or the old world that existed before the securities laws were enacted. This type is fraught with fraud, fraud and abuse in certain apps,” Gensler warned in September.

In December, Gensler emphasized that the crypto asset class “is riddled with fraud, fraud and abuse in a number of applications. Currently, investors in the crypto space lack adequate protection.”

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