SEC’s Gensler wants crypto exchanges and lending platforms to ‘come and work with’ regulators

Source: A video screenshot, Youtube/Bloomberg Markets and Finance

the US Securities and Exchange Commission (SEC) Chairman Gary Gensler has suggested that crypto exchanges and lending platforms should voluntarily work with the agency under existing securities laws.

speaking in a meeting with Bloomberg, Gensler said he and the SEC were trying to “pursue investor protections,” explaining that “if that means taking greater enforcement action, we will.” But, he continued, there could be room for some form of self-regulation or voluntary moves by exchanges to approach the SEC to express their willingness to comply.

gensler said:

“It would be better if these platforms came to work with us and were subject to securities laws.”

The laws in question were created in the early 1930s, and many in the crypto community in the United States claimed that they were unsuitable for crypto and cutting-edge modern technological advancements.

But Gensler dismissed the need for regulatory change, saying:

“I think the laws are pretty clear, [as they were] laid out in the 1930s. And we have the ability to work with these exchanges using various authorities to customize some of them.

He added that “crypto exchanges and lending platforms have operated differently from traditional New York Stock Exchange.”

Gensler once again underscored the SEC’s stance on crypto, saying that “a lot of [the] “exchange-traded” tokens have the attributes of securities.

He said:

“They raise funds from the public and the public expects profits based on the efforts of others. […] It boils down to this: are you fundraising from the public and are the anticipated benefits to the public based on the efforts of others? »

However, he admitted that some coins can be classified as “commodity tokens,” although he suggested that those classified as commodities would not remain entirely outside the SEC’s mandate.

“We will work with the Commodity Futures Trading Commission where there are [coins] which are commodity tokens. Because while many of them are titles, some may fall under their jurisdiction, and we work together as two federal agencies,” he said.

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