- SEC Chairman Gary Gensler said that crypto platforms need regulation to survive.
- The chairman also promised a crypto crackdown
The U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler noted that crypto platforms should embrace regulation or risk losing public trust. Also, he said that these platforms should request permission rather than “begging for forgiveness.”
According to Gary Gensler, the crypto industry is so big that it may struggle to survive in the U.S. outside the country’s regulatory framework. In short, Gensler thinks that crypto platforms are becoming so big that they must embrace regulation.
In an interview with Financial Times, he noted that the industry’s future in 5 to 10 years lies “within a public policy framework.” Furthermore, he added,
History just tells you, it doesn’t last long outside. Finance is about trust, ultimately.
In addition, Gensler noted, “There are a lot of platforms that are in operation today that would do better engaging. Instead, there is a bit of … begging for forgiveness rather than asking for permission.”
Moreover, Gensler stressed that regulators would oversee decentralized finance (DeFi) platforms, although a lack of central people such as brokers would make it more difficult.
Last week, the chairman also promised a crypto crackdown as he thinks the industry is “like the Wild West.”