Gary Genesler, president of the United States Securities and Exchange Commission, he said the agency’s protections that apply to investors in traditional assets should be extended to those in the cryptocurrency market.
In prepared remarks released Monday for the Penn Law Capital Markets Association Annual Conference, Gensler said that he had asked the SEC staff to explore the possibility of registering cryptocurrency platforms, subjecting them to the same regulatory framework as exchanges. Additionally, the SEC chairman said agency staff may be working to address regulatory clarity in the cryptocurrency space, considering how to register platforms. “where securities and non-securities trading intertwine” and whether retail cryptocurrency investors should be given the same protections as those in traditional markets.
“Cryptocurrencies can offer new ways for entrepreneurs to raise capital and for investors to trade, but we still need investor and market protection,” Genesler said. “We already have robust ways to protect investors who trade on platforms. And we have robust ways to protect investors when entrepreneurs want to raise money from the public. We should apply these same protections in cryptocurrency markets.”
Honored to host Chair @GaryGensler of the @SECGov at our @pennlaw Conference on the Future of Digital Assets. Join me: https://t.co/c9THiqJDVg@Wharton @Penn @PennMedicine @PennEngineers #web3 #crypto #digitalassets #blockchain #nfts #cbdcs pic.twitter.com/ly5AJmuohY
— Sarah Hammer (@FinanceHammer) April 1, 2022
The SEC chairman added that his staff will explore whether it would be “appropriate to segregate custody,” seemingly separating the registration regime for platforms that offer custody and those that do not.
“There is no reason to treat the cryptocurrency market differently just because a different technology is used.”
During his time at the SEC, Gensler has repeatedly urged crypto-securities projects to register to ensure investors are protected in a “come and talk to us” approach. Many cryptocurrency companies have criticized the lack of regulatory clarity in the United States, which may be subject to interpretation by agencies such as the SEC, the Commodity Futures Trading Commission and the Financial Crimes Enforcement Network.
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