Gary Gensler urges crypto exchanges to centralise
The US Securities and Exchange Commission (SEC) Chair Gary Gensler called on crypto exchanges to work with the SEC.
DACOM Summit 2021
At the Digital Asset Compliance and Market Integrity (DACOM) Summit 2021 the SEC Chair Gary Gensler called for crypto trading platforms to register with the SEC in lieu of consumer protection, Coingape reports. The regulator stated that the SEC was ready to cooperate and open a discussion on different topics such as token storage, etc.
“These platforms need to come in, get registered, come within the investor protection remit. There’s a lot of projects that have entrepreneurs raising money in the crypto markets and turning to gatekeepers, lawyers to track paperwork, saying, ‘how do we skirt by the authorities?’ and I don’t think that’s the right approach, but that’s similar to the Wild West,” Gensler noted.
What’s new is that Gensler, who has always put investor protection at the forefront, spoke about the need for the regulator to shift focus on registering crypto trading platforms. This statement looks even more expressive against the background of the SEC’s ambiguous crypto ETF policy. The Commission has approved three BTC futures ETFs in 2021, while rejecting BTC spot ETFs that fall under the same legislation, referring to the fact that the latter go against the regulator’s policy in protecting the investors’ interests.
Gensler argues that unregulated crypto markets and companies operating outside the regulatory sphere “will not end well”. In his opinion, these businesses can achieve success only by cooperating with the SEC.
Centralised crypto trading platforms have long been moving towards licensing and obtaining regulatory approval for their activities. It’s likely we will see many platforms eventually take advantage of Gensler’s proposal.
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