'Crypto Regulation Could Lead to Success'
Cryptocurrency trading platforms are more likely to succeed if they submit to existing crypto regulation, according to the head of the US Securities and Exchange Commission.
Talking during the Code Conference in Beverly Hills, SEC Chair Gary Gensler stopped short of confirming cryptocurrencies would come under SEC regulation, but did say observing existing tax compliance, money laundering and insider trading laws could assist exchanges.
Investors Expect Profit
Gensler said US law has a broad view of what a securities market is, but the common thread is that it involves organisations raising money from investors who expect a profit.
Being interviewed on Monday by the former US attorney for the Southern District of New York, Preet Bharara, he added: ‘I think there is a lot of clarity in the law. This won’t end well if they stay outside the regulatory space.’
There was little doubt Gensler believes cryptocurrency, including creating and trading, does come within the existing definitions of securities trading, and he believes crypto would benefit from clear regulation. Similar work towards ensuring transparency in digital assets and financial services in general are underway in the europpean union (MiCA) and the financial conduct authority (FCA) in the United Kingdom.
Request to Improve Transparency
During the Code Conference, Gensler also discussed regulation of special purpose acquisition companies (SPACs), confirming he’s asked the SEC staff to recommend regulatory measures, including improve transparency.
The SEC website notes Gensler was nominated by President, Joe Biden, and sworn in as Chair on April 17, 2021.
Prior to joining the SEC, Gensler was professor of the Practice of Global Economics and Management at the MIT Sloan School of Management, co-director of MIT’s Fintech@CSAIL, and senior advisor to the MIT Media Lab Digital Currency Initiative. He also served as chair of the Maryland Financial Consumer Protection Commission.
Author: Moni Talks
Moni Talks is a cryptocurrency trading exchange and social platform that is dedicated to the crypto community.