SEC chief urges to speed up registration of cryptocurrency exchanges

Gary Gensler believes that digital asset trading platforms should be handled the same way as securities exchanges

29.07.2022 - 11:10

506

2 min

What’s new? The US Securities and Exchange Commission (SEC) Chair Gary Gensler has instructed his staff to interact directly with cryptocurrency exchanges so that they could be registered and regulated. He posted a video on Twitter stating that “there’s no reason to treat the crypto market differently just because a different technology is used.” Gensler believes that the regulator should work with crypto exchanges the same way it works with securities exchanges.

We have rules in our capital markets to safeguard market integrity & protect against fraud & manipulation. If a company builds a crypto market that protects investors & meets the standard of our market regulations, people will more likely have greater confidence in that market. pic.twitter.com/ZxdBfvmqXP— Gary Gensler (@GaryGensler) July 28, 2022

What else did the SEC’s Chair add? According to Gensler, officials on markets oversight are also developing ways to register certain coins as securities. In addition, the agency’s staff are looking at options to address conflicts of interest arising from the fact that crypto exchanges can also act as market makers.

In June, Gensler invited other financial agencies to join forces to develop rules for crypto regulation. He noted that he was working on a “memorandum of understanding” with the Commodity Futures Trading Commission (CFTC). The regulators will share information about digital assets.

In July, the SEC launched an investigation into crypto exchange Coinbase. The regulator suspects it of selling unregistered securities.

Author: