SEC Chairman Wants Stronger Protection For The Crypto Investors
SEC Chairman Wants Stronger Protection For The Crypto Investors
According to Gary Gensler, chairman of the US Securities and Exchange Commission, cryptocurrency assets are extremely speculative, and investors in them want stronger protection or risk losing faith in the markets.
Individuals who acquire cryptocurrencies typically do not receive the same disclosures that people who buy traditional assets do, such as whether the trading platform they are using is trading against them or if they genuinely control the assets they hold in digital wallets, according to Gensler.
“We have this basic bargain: You the investing public can make your choices about the risk you take, but there is supposed to be full and fair disclosure, and people are not supposed to lie to you,” he said at the Financial Industry Regulatory Authority’s annual conference in Washington.
His comments follow the dramatic collapse of TerraUSD, a so-called stablecoin that lost its dollar peg last week.
While crypto markets are considered to be decentralized, most activity takes place on a few trading platforms, which, together with token issuers, must engage with the SEC to tighten industry regulations and disclosures, according to Gensler.
He noted “anti-fraud, anti-manipulation, making sure there’s not front-running, making sure an order book is actually real and not made up.” as examples of core market principles.
According to Gensler, the SEC would remain “a cop on the beat” while working with the Commodity Futures Trading Commission to ensure that all cryptocurrencies are protected.
“There’s a lot to be done here, and in the meantime the investing public is not that well protected,” he said.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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SEC Chairman Wants Stronger Protection For The Crypto Investors
SEC Chairman Wants Stronger Protection For The Crypto Investors
According to Gary Gensler, chairman of the US Securities and Exchange Commission, cryptocurrency assets are extremely speculative, and investors in them want stronger protection or risk losing faith in the markets.
Individuals who acquire cryptocurrencies typically do not receive the same disclosures that people who buy traditional assets do, such as whether the trading platform they are using is trading against them or if they genuinely control the assets they hold in digital wallets, according to Gensler.
“We have this basic bargain: You the investing public can make your choices about the risk you take, but there is supposed to be full and fair disclosure, and people are not supposed to lie to you,” he said at the Financial Industry Regulatory Authority’s annual conference in Washington.
His comments follow the dramatic collapse of TerraUSD, a so-called stablecoin that lost its dollar peg last week.
While crypto markets are considered to be decentralized, most activity takes place on a few trading platforms, which, together with token issuers, must engage with the SEC to tighten industry regulations and disclosures, according to Gensler.
He noted “anti-fraud, anti-manipulation, making sure there’s not front-running, making sure an order book is actually real and not made up.” as examples of core market principles.
According to Gensler, the SEC would remain “a cop on the beat” while working with the Commodity Futures Trading Commission to ensure that all cryptocurrencies are protected.
“There’s a lot to be done here, and in the meantime the investing public is not that well protected,” he said.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Hazel
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