SEC chair says the growth of centralization of the crypto market

Gary Gensler also urged the management of the exchanges to independently contact his agency to clarify the status of the listed digital assets

25.10.2022 - 11:15

344

2 min

What’s new? Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), noted the growth of centralization of the cryptocurrency market, contrary to what its concept directly is opposite. According to the official, crypto exchanges benefit greatly from scale, network effects, and access to valuable data. Speaking at the annual meeting of the Securities Industry and Financial Markets Association (SIFMA), Gensler urged attention to those industries where concentration and income could potentially increase in the future.

News on The Block’s website

What other statements have been made? Gensler believes that virtually all crypto exchanges violate US securities laws by listing assets not registered with the agency. He urged the exchanges’ management to independently contact the SEC to clarify the status of cryptocurrencies traded on the platforms, explaining that each individual project will be reviewed on a case-by-case basis.

The chair of the commission added that cryptocurrencies fall under the definition of securities because users invest in them in anticipation of making a profit. As such, platforms need to “register <with the SEC> and have the full fair and truthful disclosure.”

The official also warned lawmakers against creating a fundamentally new regulatory framework for cryptocurrencies, noting that they undermine “the competitiveness of our equity markets or fixed income markets that are regulated.”

In this, Gensler stressed the importance of equal treatment of market participants. He said that this will prevent market manipulation and ensure fair competition in terms of cost and quality of service.

Earlier, the SEC chair proposed that Congress give the Commodity Futures Trading Commission (CFTC) more authority to control stablecoins. Gensler noted that this would reduce risks to the financial system. He also supported a bill to give the CFTC authority to oversee bitcoin and Ethereum.

Author: