Gary Gensler: New financial technologies continue to change the face of finance. The Chairman of the U.S. Securities and Exchange Commission (SEC), during a speech in the European Parliament, tried to outline the contours of the globalization of cryptocurrency markets.
Gensler stressed the importance of financial technologies that break down barriers and unite European and American markets. Similarly, he compared the current transformation to the Internet in the 1990s and especially highlighted the digital asset market, “which has no borders or boundaries and operates 24 hours a day, 7 days a week.”
Also, emphasizing his neutral attitude to technology and public policy. The head of the SEC pointed to the desire to ensure the protection of investors and consumers. In order to counteract illegal activities and to support financial stability.
Areas of concern
According to the Chairman of SEC, digital asset trading and lending platforms, including decentralized exchange (DEX), are areas of concern. He considered it obvious that there are no standards for protecting investors from fraud and violation of their rights on some of them.
Later, he stressed that special equipment and software on platforms, work at the legislative level can help in these issues.
In his speech, Gensler also pointed out the risk of widespread use of stablecoins. Mentioning the Diem crypto project supported by Facebook.
He went on to say: “The use of stablecoins on these platforms may facilitate those seeking to sidestep a host of public policy goals connected to our traditional banking and financial system: anti-money laundering, sanctions, and more”.
How it was before
Recall that in an interview with the Financial Times, Gary previously noted that regulation is necessary for the survival of cryptocurrencies.
In May, he called on Congress to clarify the regulatory framework of the crypto industry. Moreover, in August, Gensler warned of increased regulation of stablecoins and DeFi. In his opinion, decentralization does not give immunity from the supervision of the Commission.