Cryptocurrency exchanges perform more functions than just organizing trading, and sometimes they can work against their clients. Chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler expressed this opinion in an interview with the Wall Street Journal.
“The public expects some profit based on the efforts of some entrepreneur or a group of programmers who received money from the public. This is within the competence of the regulator,” the official said.
Thus, he confirmed his intention to take tougher measures to protect investors and stressed that exchanges store user funds. Platforms can also use the information received from customers, Gensler added, urging companies to interact with the Commission.
“Come in, work with the SEC, register”
“I have publicly stated: come in, work with the SEC, register. In fact, these are exchanges, but other activities take place inside them. Therefore, investors should receive reliable protection,” Gensler stressed.
Earlier, the official admitted that cryptocurrencies have a future, but only in an “environment of trust”. In his opinion, the existence of the industry outside the regulatory perimeter may lead to a loss of public confidence in the technology.
In May, the chairman of the Commission called on the US Congress to clarify the regulation of the crypto industry and expressed the opinion that the rules are necessary for digital assets to survive.
Decentralization does not give immunity from SEC supervision
In the summer, Gensler warned of increased regulation of stablecoins and decentralized finance (DeFi). According to the head of the department, decentralization does not give immunity from SEC supervision.
Recall that previously in October, Gensler announced that the Commission had no plans to ban cryptocurrencies, referring to the fact that this is the prerogative of Congress. Furthermore, he commented on a question from a member of the House of Representatives Ted Budd. It was about the possibility of following China’s path with regard to digital assets.
“Our approach is completely different. The question is how do we integrate this area (of cryptocurrencies) into the existing framework for protecting investors and consumers. How should we interact with other regulators to facilitate the work of the Ministry of Finance on combating money laundering and tax administration,” he explained.