{"id":15016,"date":"2021-12-06T01:54:19","date_gmt":"2021-12-06T01:54:19","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/sec-chairman-gary-gensler-stresses-crypto-markets-are-open-to-manipulation-investors-vulnerable\/"},"modified":"2021-12-06T01:54:19","modified_gmt":"2021-12-06T01:54:19","slug":"sec-chairman-gary-gensler-stresses-crypto-markets-are-open-to-manipulation-investors-vulnerable","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/sec-chairman-gary-gensler-stresses-crypto-markets-are-open-to-manipulation-investors-vulnerable\/","title":{"rendered":"SEC Chairman Gary Gensler Stresses Crypto Markets Are Open to Manipulation, Investors Vulnerable"},"content":{"rendered":"

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has called for more investor protection in crypto markets. \u201cThis asset class is rife with fraud, scams, and abuse in certain applications,\u201d he said. \u201cIn many cases, investors aren\u2019t able to get rigorous, balanced, and complete information on tokens or trading and lending platforms.\u201d<\/strong><\/p>\n

Gary Gensler Wants More Investor Protection in Crypto Markets<\/h2>\n

SEC Chairman Gary Gensler raised concerns about the cryptocurrency markets at an Investor Advisory Committee meeting last week.<\/p>\n

The Investor Advisory Committee, established by Section 911 of the Dodd-Frank Act, advises the SEC on regulatory priorities, including \u201cinitiatives to protect investor interests and to promote investor confidence and the integrity of the securities marketplace.\u201d<\/p>\n

During his speech, Gensler shared some concerns regarding the crypto markets.<\/p>\n

He began by acknowledging that \u201cSatoshi Nakamoto\u2019s \u2018Bitcoin Whitepaper\u2019 and the crypto markets that followed have been catalysts for change.\u201d In August, Gensler said<\/a> Bitcoin\u2019s pseudonymous creator\u2019s \u201cinnovation is real\u201d and \u201cit has been and could continue to be a catalyst for change in the fields of finance and money.\u201d<\/p>\n

Citing the market cap of all cryptocurrencies, Gensler told the Investor Advisory Committee: \u201cThis is an asset class that belongs inside public policy frameworks of looking after investors, guarding against illicit activity, and protecting our financial stability.\u201d He opined:<\/p>\n

Unfortunately, this asset class is rife with fraud, scams, and abuse in certain applications \u2026 In many cases, investors aren\u2019t able to get rigorous, balanced, and complete information on tokens or trading and lending platforms.<\/p>\n

\u201cRight now, we just don\u2019t have enough investor protection in crypto,\u201d the SEC boss described. \u201cThe American public is buying, selling, and lending crypto on trading, lending, and decentralized finance (defi) platforms, where there are significant gaps in investor protection.\u201d He stressed:<\/p>\n

This leaves markets open to manipulation. This leaves investors vulnerable. If we don\u2019t address these issues, I worry a lot of people will be hurt.<\/p>\n

Gensler proceeded to explain that many crypto \u201ctokens are offered and sold as securities.\u201d Commenting on whether a token is considered as a security, he said: \u201cThere\u2019s actually a lot of clarity on that front. In the 1930s, Congress established the definition of a security, which included about 20 items, like stock, bonds, and notes.\u201d<\/p>\n

The SEC chairman continued: \u201cOne of the items is an investment contract,\u201d noting that many tokens in the crypto markets \u201cmay be unregistered securities, without required disclosures or market oversight.\u201d<\/p>\n

Gensler opined:<\/p>\n

It\u2019s best not to wait for a big spill on aisle three \u2014 the crypto aisle, with all its tokens, trading and lending going on \u2014 to clean up the investor protection issues.<\/p>\n

The SEC chair concluded his speech by stating that crypto platform operators and token issuers should \u201ccome in and talk to the staff at the SEC.\u201d<\/p>\n

He added: \u201cFinancial innovations throughout history don\u2019t long thrive outside of our public policy frameworks. If this field is going to continue, or reach any of its potential to be a catalyst for change, we\u2019d better bring it into public policy frameworks.\u201d<\/p>\n

What do you think about SEC Chairman Gary Gensler\u2019s comments on investor protection and crypto market manipulation? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Bitcoin markets, Crypto markets, cryptocurrency markets, Cryptocurrency regulation, Gary Gensler, investor protection, market manipulation, SEC, sec chairman, sec crypto<\/p>\n","protected":false},"excerpt":{"rendered":"

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has called for more investor protection in crypto markets. \u201cThis asset class is rife with fraud, scams, and abuse in certain applications,\u201d he said. \u201cIn many cases, investors aren\u2019t able to get rigorous, balanced, and complete information on tokens or trading and lending…<\/p>\n","protected":false},"author":0,"featured_media":15017,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-15016","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\/15016"}],"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=15016"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/15016\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/15017"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=15016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=15016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=15016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}