New SEC chair pushing for “robust” cryptocurrency regulations in the US
By Bob Garcia
Gary Gensler believes it’s time for US financial leaders to become proactive on cryptocurrency
The constant struggle of the US Securities and Exchange Commission (SEC) to establish a solid regulatory regime for the crypto space continues. Now, its newest chairman, Gary Gensler, is doing everything possible to make this a reality as soon as possible.
Gensler has expressed on several occasions the SEC’s desire to install safeguards for crypto investors in the US, preventing any disaster that this type of market may suffer in the future. “If someone wants to speculate, that’s their choice, but we have a role as a nation to protect those investors against fraud,” Gensler stated during an interview.
The regulator’s chairman has identified seven policy changes related to this issue and says the Commission is doing all the necessary analysis to see if they are in the regulatory interest. The issues that stand out most among these changes are decentralized finance (DeFi), token offerings, and stablecoins. In addition to these issues, the SEC has been giving priority focus to custody, lending platforms, and exchange-traded funds (ETFs).
According to Gensler’s thinking, the establishment of cryptocurrency exchange regulations would pave the way for the SEC to achieve proper oversight of the related trading field. Gensler, at the same time, also made it clear that the crypto lending market is something that the SEC is attaching importance to.
While it is true that Gensler has a greater interest in introducing regulatory clarity with respect to this growing crypto market in the US, it has been reported that such measures are not yet on the SEC’s agenda. There are other priority issues that the Commission needs to address at this time, which is part of the same explanation that has been given for its lack of regulatory advancement over the past several years.