{"id":10499,"date":"2021-08-05T00:54:12","date_gmt":"2021-08-05T00:54:12","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/sec-chair-gensler-outlines-plans-for-crypto-trading-exchanges-investor-protection-bitcoin-etfs\/"},"modified":"2021-08-05T00:54:12","modified_gmt":"2021-08-05T00:54:12","slug":"sec-chair-gensler-outlines-plans-for-crypto-trading-exchanges-investor-protection-bitcoin-etfs","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/sec-chair-gensler-outlines-plans-for-crypto-trading-exchanges-investor-protection-bitcoin-etfs\/","title":{"rendered":"SEC Chair Gensler Outlines Plans for Crypto Trading, Exchanges, Investor Protection, Bitcoin ETFs"},"content":{"rendered":"

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has outlined how the SEC plans to regulate the crypto industry. Focusing on investor protection, Gensler discussed concerns the SEC has about crypto trading, exchanges, lending, defi platforms, and exchange-traded funds (ETFs).<\/strong><\/p>\n

Gary Gensler Outlines SEC\u2019s Crypto Priorities<\/h2>\n

SEC Chairman Gary Gensler outlined the agency\u2019s plans regarding the regulation of cryptocurrencies at the Aspen Security Forum Tuesday. He described:<\/p>\n

Right now, we just don\u2019t have enough investor protection in crypto. Frankly, at this time, it\u2019s more like the Wild West. This asset class is rife with fraud, scams, and abuse in certain applications \u2026 If we don\u2019t address these issues, I worry a lot of people will be hurt.<\/p>\n

He elaborated: \u201cThere\u2019s a great deal of hype and spin about how crypto assets work. In many cases, investors aren\u2019t able to get rigorous, balanced, and complete information.\u201d<\/p>\n

Regulating Crypto Platforms: Gensler Says Many Are Offering Unregistered Securities<\/h2>\n

The SEC chairman proceeded to explain that many tokens are offered and sold as securities. \u201cI\u2019ve urged staff to continue to protect investors in the case of unregistered sales of securities,\u201d he said.<\/p>\n

Next, the chairman said he believes that crypto trading platforms, lending platforms, and decentralized finance (defi) platforms \u201ccan implicate the securities laws,\u201d and in some cases the commodities laws and the banking laws as well.<\/p>\n

He also stressed that cryptocurrency trading platforms do not have the same investor protection as traditional exchanges, like the New York Stock Exchange (NYSE). In addition, he said that many overseas platforms allow U.S. investors to trade cryptocurrencies using virtual private networks (VPNs), thus bypassing regulations.<\/p>\n

Gensler emphasized:<\/p>\n

Make no mistake: To the extent that there are securities on these trading platforms, under our laws they have to register with the Commission unless they meet an exemption \u2026 If a lending platform is offering securities, it also falls into SEC jurisdiction.<\/p>\n

Regulating Investment Vehicles With Crypto Exposure, Bitcoin ETFs<\/h2>\n

The chairman also addressed investment vehicles that provide exposure to crypto assets, including mutual funds that invest in bitcoin futures on the Chicago Mercantile Exchange (CME).<\/p>\n

\u201cI anticipate that there will be filings with regard to exchange-traded funds (ETFs) under the Investment Company Act (\u201940 Act). When combined with the other federal securities laws, the \u201940 Act provides significant investor protections,\u201d Gensler opined, adding:<\/p>\n

Given these important protections, I look forward to the staff\u2019s review of such filings, particularly if those are limited to these CME-traded bitcoin futures.<\/p>\n

Gensler also addressed the custody of crypto assets, stating: \u201cCustody protections are key to preventing theft of investor assets, and we will be looking to maximize regulatory protections in this area.\u201d<\/p>\n

<\/p>\n

SEC Needs More Resources to Protect Investors<\/h2>\n

Gensler stressed that the SEC has taken and will continue to take its \u201cauthorities as far as they go.\u201d<\/p>\n

He also claimed, \u201cThe test to determine whether a crypto asset is a security is clear.\u201d Nonetheless, he admitted that \u201cThere are some gaps\u201d in regulating the crypto space, elaborating:<\/p>\n

We need additional Congressional authorities to prevent transactions, products, and platforms from falling between regulatory cracks. We also need more resources to protect investors in this growing and volatile sector.<\/p>\n

The former MIT blockchain professor<\/a> proceeded to emphasize that the SEC is ready to work closely with Congress, the administration, and other regulators worldwide to oversee the crypto space. He opined:<\/p>\n

In my view, the legislative priority should center on crypto trading, lending, and defi platforms. Regulators would benefit from additional plenary authority to write rules for and attach guardrails to crypto trading and lending.<\/p>\n

What do you think about Gensler\u2019s comments on regulating the crypto industry? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, bitcoin etf, crypto etf, Crypto regulation, Cryptocurrency regulation, Gary Gensler, SEC, sec bitcoin etf, sec chair, sec chairman<\/p>\n","protected":false},"excerpt":{"rendered":"

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has outlined how the SEC plans to regulate the crypto industry. Focusing on investor protection, Gensler discussed concerns the SEC has about crypto trading, exchanges, lending, defi platforms, and exchange-traded funds (ETFs). Gary Gensler Outlines SEC\u2019s Crypto Priorities SEC Chairman Gary Gensler outlined…<\/p>\n","protected":false},"author":0,"featured_media":10500,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10499"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10499"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10499\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10500"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}