- Last week, SEC Chair, Gary Gensler, talked about the need to regulate cryptos before the Senate Banking Committee.
- In hopes to continue the discourse, he joined the Washington Post Live last September 21, in its The Path Forward Series.
- He also talked about the growth of digital trading platforms and the cryptocurrency landscape.
Washington Post Live interviewed SEC Chair, Gary Gensler, yesterday. Here, Gensler talked about the need to regulate cryptocurrencies. Crypto enthusiasts are probably aware that this is an ongoing issue in financial markets.
Moreover, in hopes to continue the discourse, he joined the Washington Post Live last September 21, in its The Path Forward Series. Here, the columnist for The Post, David Ignatius interviewed the SEC Chair.
Going further, the interview went deeper into the concept of regulating cryptos. For Gensler, he says that cryptocurrencies are speculative assets. As the market saw a significant blip yesterday, Gensler discussed how these assets could go down or up dramatically.
Investors get to decide whether you invest, but the issuer has to give you full and fair disclosure, and we protect against fraud and the like… and the manipulation in the markets. That’s one of my worries about crypto and the crypto asset class.
He continued on to say that numerous trading platforms might not even have securities, investment contracts or investor protection remit. For him, this can cause problems in the long run and these platforms should register or invest in such contracts.
When asked if there is a need for additional congressional authorization on cryptocurrencies, he answered:
I think that we have robust authorities at the Securities and Exchange Commission and we’re going to use them and continue. I think it would be better… the platforms that are trading securities, the platforms that have lending products, who have what’s called “staking products
Lastly, Gensler emphasized that people get hurt on “investment contracts outside an investment protection remit”. Hence, the warning signs and flashing lights, as Gensler said, should be taken care of.