US Gary Gensler, chairman of Securities and Exchange Commission (SEC), stated The SEC should register crypto intermediaries.
Giving his testimony during a hearing titled “Oversight of the U.S. Securities and Exchange Commission” On Thursday, Gensler described securities laws as the “gold-standard” for capital market regulation.
Gensler stated that most crypto tokens were securities and should therefore be registered with the SEC as intermediaries centralized or decentralized.
Due to the high level of non-compliance in cryptocurrency, there are too many platforms currently not registered and compliant.SEC staff have been requested to register and regulate tokens linked to cryptocurrency assets as securities. They also require intermediaries (exchanges, broker-dealers and institutions that have custody functions) to register with SEC to trade securities.
You can find the transcript of his speech hereGary Gensler explained that stablecoins need to also be registered because they can be “stocks which could be money-market funds or other securities.”
Gensler stated that the SEC would “continue strong enforcement actions” and improve its regulatory framework.
His words echoed the actions needed to regulate the cryptocurrency industry. He mentions, “Given the nature of crypto Investments I acknowledge that flexibility in disclosure requirements may be appropriate.”
Gensler stated that crypto intermediaries might need to register both with the SEC (and the Commodity Futures Trading Commission) (CFTC) in one day to become dual registrants.
Gensler stated that cryptocurrencies must continue to grow on a level playing field. Chairman said that the SEC would examine all aspects of additional regulation to ensure that the market does not become obstructed.
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