Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), wants an inclusive and transparent capital market with plans to extend oversight to the crypto ecosystem.
According to a statement detailing the proposed speech of the Chairman ahead of his testimony before the United States Banking Committee on Tuesday, September 14, Gensler believes the crypto market is replete with fraud.
“Currently, we just don’t have enough investor protection in crypto finance, issuance, trading, or lending,” the Chairman wrote, adding:
“Frankly, at this time, it’s more like the Wild West or the old world of ‘buyer beware’ that existed before the securities laws were enacted. This asset class is rife with fraud, scams, and abuse in certain applications.”
Gensler noted that the country’s digital currency ecosystem could do better. The commission will be working along two major lines; bridging all gaps through the help of regulators, and working with other regulators with overlapping oversights on the cryptocurrency ecosystem.
“With respect to investor protection, we’re working with our sibling agency, the CFTC, as our two agencies each have relevant, and in some cases, overlapping jurisdiction in the crypto markets. Concerning a broader set of policy frameworks, we’re working with not only the CFTC but also the Federal Reserve, Department of Treasury, Office of the Comptroller of the Currency, and other members of the President’s Working Group on Financial Markets on these matters,” Gensler added.
In all, the Chairman will inform the lawmakers how he hopes to promote inclusiveness amongst the key stakeholders in the crypto ecosystem by encouraging them to come and engage the commission with details of their plans. Gensler notably affirmed that he has oftentimes “suggested that platforms and projects come in and talk to us” so the agency can help categorize whether the tokens listed on their platforms are securities or not.
Gensler will end the section on crypto by affirming that he is technology-neutral. His ultimate aim is to collaboratively bring regulations to the highest regulatory controversial digital currency ecosystem. Part of these controversies fueled the ongoing Ripple-SEC legal tussle, an occurrence that will be prevented with the promise of comprehensive regulation.