The SEC Chairman called for higher regulatory clarity on the working of crypto exchanges in the US while ensuring investor protection.
On Thursday, May 6, US SEC chairman Gary Gensler said that he is willing to work with the US Congress in setting up the regulatory framework for crypto exchanges. Gensler’s recent comments came during a hearing on Thursday, May 6, while testifying with the House Financial Services Committee.
The SEC Chairman said that the $2 trillion crypto market calls for higher investor protection. He also noted that the SEC’s authority is currently limited to securities, product, and asset managers investing in crypto. However, he asked the US Congress for bringing greater regulatory clarity.
Industry leaders for the crypto space have been also calling for crypto regulatory. Last week, Ripple CEO Brad Garlinghouse also said that US regulators should accelerate regulatory development. He also pointed out the US is far behind other Asia countries in bring crypto regulations. Spaeking during the hearing, Gensler said:
“Right now these exchanges do not have a regulatory framework at the SEC or at our sister agency, the Commodity Futures Trading Commission. Right now there’s not a market regulator around these crypto exchanges and thus there’s really no protection around fraud or manipulation.”
Gary Gensler – the Hope for US Crypto Market
The crypto community is having high hopes from Gary Gensler who is reportedly having a crypto-friendly approach over his predecessor Jay Clayton. Besides, before his appointment as the SEC Chairman, Gensler taught cryptocurrencies and blockahin in Massechusets Institute of Technology.
The crypto community has great hopes that Gensler will approve America’s first Bitcoin ETF this year. However, the SEC has recently delayed its decision on the VanEck Bitcoin ETF.
Gensler also noted that the SEC is paying close attention to social media interactions. He specifically spoke about the sentiment analysis catching up steam. He said:
“This practice, called sentiment analysis, has picked up steam in the last couple of years, and it has grown to include online communities. With that comes the risk that nefarious actors may try to send signals to manipulate the market. This is an area for which we will continue to deepen our understanding, resources, and capabilities.”
Gensler, however, didn’t specifically mention as to what regulations should be applied for crypto exchanges.
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