The SEC chair wants to see cryptocurrency exchanges and brokers register with the agency.Gary Gensler, the Chair of the SEC, has said that the agency desire to see more cryptocurrency firms – brokers, exchanges; and so on – embrace regulation as the first major step toward consumer protection.

In an interview with Yahoo Finance, Gensler says that the SEC has “jurisdiction over securities and crypto assets”, adding:

“If you have an initial coin offering, a security token offering, our Securities Act applies. If you want to trade securities tokens on a secondary basis – what people sometimes call a crypto exchange – we think most of those are subject to SEC jurisdiction.”

This isn’t the first time Gensler has spoken about the need for more regulatory clarity in the crypto space. Earlier this year, he told Congress that “greater investor protection” was needed in the market, and called for “thoughtful and calibrated regulation”.

SEC is empowered to regulate crypto securities

The SEC boss says in a commentary that was reported on by Bloomberg that. The securities watchdog is authorized to regulate the crypto industry, even as they pursue greater involvement and accountability from those within it.

The regulator says that most cryptocurrencies fall under their regulation because of their legal definition. They are urging crypto exchanges, brokers, and other service providers to follow regulations.

Gensler states that the people involved in cryptocurrencies should be able to have the same shield against crypto companies. As investors in more traditional securities, these comments echo what he said after both Terra and Three Arrows Capital failed.

He reaffirms this standpoint in recent remarks, which characterized Bitcoin as a commodity. He says the same thing today, according to MicroStrategy’s Michael Saylor, who posted the comment on Twitter.

In addition, the SEC chair discussed people who do not follow the rules and how it seems like many individuals are uninterested in being regulated.

“The message isn’t the same as not comprehending it if you don’t like it,” SEC Chair Gary Gensler says during a regulatory event in Washington.

Issues around crypto regulations

The issues around cryptocurrency regulation have been a contentious topic. Some in the industry have pushed back against what they see as overbearing or unnecessary rules.

Just last week, Kraken CEO Jesse Powell took shots at the NYDFS during a live-streamed event, calling the BitLicense “a shakedown.” While also saying crypto needs “light touch” regulation.

But Gensler has long been an advocate for crypto exchanges to be regulated as securities exchanges.

During his time at the CFTC, he voted in favor of approving LedgerX as a derivatives exchange and clearing house. He also helped shepherd through Ethereum’s classification as a commodity.

As for why crypto regulation is needed, Gensler has said that it’s to protect “Main Street investors.”

“I do think we need a regulatory regime, and one that probably looks more like securities regulation than bank regulation, but we still have to make sure there is custody, know-your-customer rules and anti-money laundering,” Gensler says in 2018.

Currently, there is no federal crypto regulatory regime in the U.S. Though various agencies have asserted their authority over different aspects of the space.

The SEC has taken action against many initial coin offerings that it alleges were sold illegally as unregistered securities. And it has also brought enforcement actions against exchanges and other companies for violating securities laws.

About SEC

The SEC is a federal government agency that supports investors and stops securities fraud. It also works to keep markets orderly, fair, and efficient while also helping businesses raise money.

The SEC’s mission is to promote a fair and efficient marketplace by enforcing federal securities laws and regulating the securities industry.

The SEC is responsible for enforcing the federal securities laws. This includes the rules and regulations of the securities industry. The SEC also regulates the trading of securities on the stock exchanges and in the over-the-counter markets.

James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.