The current Chair of the US Securities and Exchange Commission – Gary Gensler – opined that Washington’s financial watchdogs should directly regulate cryptocurrency trading venues. He raised hopes that further monitoring will happen this year to grant investors more protection when dealing with bitcoin and altcoins.
Crypto Platforms Are a Target in 2022
The 64-year-old American has repeatedly stated that the digital asset space needs better investor rules. Last year, he outlined his affection for the industry but said this will not stop him from pushing for enhanced regulations in the market.
“I’m not neutral about investor protection. If somebody wants to speculate, that’s their choice, but we have a role as a nation to protect those investors against fraud,” Gensler said at the time.
During a recent virtual press conference, he reasserted his viewpoint by saying that cryptocurrency exchanges should face more scrutiny from the SEC and other monetary regulators this year. He expects that the additional monitoring will provide investors with the necessary protection when trading digital assets.
“I’ve asked staff to look at every way to get these platforms inside the investor protection remit. If the trading platforms don’t come into the regulated space, it’d be another year of the public being vulnerable,” he concluded.
It is worth noting that at the end of 2021, the SEC hired a new senior advisor, whose main duty is to advise Chairman Gary Gensler on regulations of cryptocurrencies. The name of the new exec is Corey Frayer, and he has previously worked on “issues ranging from consumer and investor protection.”
Protection but Not a Crypto Ban
One of last year’s main events in the digital asset industry was the total crypto ban, which the Chinese government imposed inside its borders. Following it, numerous other countries started contemplating whether they should implement the same rules.
In October, Gary Gensler affirmed that the United States will not be among those nations. While following the Chinese path is not on the agenda, the financial regulators have focused on enhanced protection for investors in the space, the Chairman said once more.
Fed Chair Jerome Powell also reassured that the USA has no intentions to prohibit the usage of digital assets. Like Gensler, though, he urged for more supervision in the space.
Featured Image Courtesy of The Guardian
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 25% off trading fees.