What You Need to Know
- Large parts of the field of crypto are sitting astride of — not operating within — regulatory frameworks, Gensler says.
- He calls for Congress to give the SEC more authority over cryptocurrency trading and lending.
- Legislation granting that authority may get attached to one of the big spending bills this fall, Greg Valliere says.
SEC Chairman Gary Gensler said Tuesday that Congress should grant the securities regulator oversight authority over the cryptocurrency market or “a lot of people will be hurt.”
Right now, Gensler said in remarks before the Aspen Security Forum, “we just don’t have enough investor protection in crypto. Frankly, at this time, it’s more like the Wild West.”
The crypto asset class “is rife with fraud, scams and abuse in certain applications,” Gensler continued. “There’s a great deal of hype and spin about how crypto assets work. In many cases, investors aren’t able to get rigorous, balanced and complete information. If we don’t address these issues, I worry a lot of people will be hurt.”
Many tokens, Gensler maintained, “are offered and sold as securities.”
The SEC has taken, and “will continue to take our authorities as far as they go” when it comes to regulating cryptocurrencies, Gensler said.
Certain rules related to crypto-assets, he stated, “are well-settled. The test to determine whether a crypto asset is a security is clear.