Gary Gensler, the newly appointed chairman of the US Securities and Exchange Commission (SEC), has recommended to Congress to regulate crypto exchanges to protect traders and investors
SEC Chairman Gary Gensler has advised the US Congress to regulate cryptocurrency exchange activities to protect investors in the market. He said this in his first public hearing after taking the helm of the regulator.
He stressed that the $ 2 trillion market in the United States needs more investor protection. Gensler advised Congress to regulate the activities of crypto exchanges. They are the first place people visit to gain access to cryptocurrencies.
According to Gensler, the SEC will not be able to regulate crypto exchanges because the agency’s focus is on securities, products or asset managers through which to invest in digital currencies. He explained that the main focus should be on crypto trading platforms.
“At the moment, these exchanges do not have a regulatory framework with the SEC or with our sister agency, the Commodity Futures Trading Commission. Currently, there is no market regulator around these crypto exchanges. In this respect, there is no real protection against fraud or Manipulation“, he added.
The SEC chairman did not elaborate on what kind of regulations should come into force. Several countries continue to struggle with the challenges of regulating the cryptocurrency space due to the nature of the market. The crypto space has only existed for a little over a decade and has undergone numerous changes in recent years, making it difficult for regulators to introduce adequate regulations.
However, the massive growth of the market over the past year makes it necessary to regulate activities of crypto-companies and, above all, exchanges. Crypto traders and investors have lost billions of dollars through exit scams and crypto exchanges.
