Crypto industry needs more regulatory control, says SEC chair

Senator Elizabeth Warren received a letter from Gary Gensler, chairman of the Securities and Exchange Commission (SEC), regarding the need for more authority over crypto regulation.

Crypto industry needs more regulatory control, says SEC chair

Senator Elizabeth Warren received a letter from Gary Gensler, chairman of the Securities and Exchange Commission (SEC), regarding the need for more authority over crypto regulation.

Having discussed his concerns and priorities about the crypto sector, he made it clear "those additional authorities are needed" as well as “more resources" to protect investors.

Senator Elizabeth Warren recently exposed the letter she received from Gary Gensler in response to her July 7 letter about regulatory measures for cryptocurrency.

Gensler outlines a number of crypto-related areas in his letter, which is similar to his speech at Aspen Security Forum. He replied on Aug. 5, though Senator Warren asked him to do so by July 28.

Moreover, the financial authority clarified that there are centralized and decentralized finance (defi) platforms, adding that some of them may be in violation of banking law, securities law, commodities law,

In addition to supporting more than 50 tokens and some having well over 100 tokens, Gensler continued:

“The legal status of tokens varies according to the facts and circumstances involved, but until a platform has a million tokens or a thousand tokens, zero securities are very rare.”

He said a number of tokens aren't currently registered as securities and do not have the necessary market oversight or disclosure.

Gary Gensler mentioned that some unregulated offshore platforms allow American investors to trade crypto assets via private virtual networks

Stablecoins are also a concern to the SEC chief, who stated:

“Stablecoins can facilitate those trying to sidestep anti-money laundering, tax compliance, and sanctions related to our traditional banking and financial system by using these platforms.”

“In relation to [crypto] platforms, stablecoins can be beneficial for those seeking to sidestep a variety of public policy objectives related to traditional banking and financial systems such as anti-money laundering, compliance with tax laws, and sanctions.”

Because of this, the SEC leader points out that crypto activity should be regulated more effectively in the world's largest economy.

In closing some of these gaps, we stand ready to collaborate with Congress, the Administration, and our regulators around the world," Gensler concluded.