The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has outlined two paths the agency is taking to regulate the crypto industry.
SEC Chair Gensler on FTX’s Undoing
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, talked about crypto regulation and the undoing of cryptocurrency exchange FTX in an interview with CNBC Thursday. Without confirming whether the SEC is investigating FTX, the chairman explained that when crypto exchanges “mix together a bunch of customer money” without disclosure and “leverage borrowing against it,” investors get hurt.
Look, I think that investors need better protection in this space. But I would say this, this is a field that’s significantly non-compliant, but it’s got regulation and those regulations are often very clear, and we have multiple paths.
“One path is working with those crypto exchanges, crypto lending platforms, and to get them properly registered and why that matters is that so the public is protected,” he explained.
Gensler often said that crypto trading and lending platforms should “come in, talk to us, and get registered.”
The SEC chairman replied:I think we’ve been clear in these meetings … non-compliance is not going to work, the public is going to be hurt, but also we’re going to continue on these dual paths. He added that if necessary, the SEC will be “the cop on the beat, going into court, putting the facts and the law in front of judges.”
“It’s about the platforms or the intermediaries. This is not like the New York Stock Exchange or Nasdaq,” Gensler stressed, adding that a handful of crypto lending and trading platforms “comingle” assets. He opined:It’s another toxic combination where they take people’s money, they borrow against it, it’s not much disclosure, and then they trade against their customers.（By Kevin Helms,bitcoin.com）