Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), has requested Congress to grant it more power to oversee the ever-evolving digital currency ecosystem.
Per a CNBC report, Gensler made this known as the Aspen Security Forum held on Tuesday, saying the SEC will always exercise its “authorities as far as they go.”
“Certain rules related to crypto-assets are well settled. The test to determine whether a crypto asset is a security is clear,” he said. “There are some gaps in this space, though: “We need additional congressional authorities to prevent transactions, products and platforms from falling between regulatory cracks. We also need more resources to protect investors in this growing and volatile sector.”
Gensler has broad experience as a blockchain and crypto lecturer at the Massachusetts Institute of Technology, Gensler said he would take a hands-on approach to monitor the crypto industry, a move that will be complemented should lawmakers grant the agency the right to regulate crypto exchanges.
Protecting consumers’ interests has become the core concern of regulators. Based on this, regulators in the United States have always restricted the type of products commonplace in the crypto world from being marketed in the country. A notable example is Initial Coin Offerings (ICOs). The firm has had a major legal battle with firms that offer this product to its masses, with social messaging giant Telegram being amongst those who met with the strong arm of the SEC in that regard.
Gensler’s call also comes following a prompting from Sen Elizabeth Warren, who called on Treasury Sec Janet Yellen and all regulators to provide the needed oversight to protect consumers from crypto scams in the country. Should Congress redefine the powers of the SEC over the crypto space, more clarity in digital currency regulation may be published, keep blockchain startups in check, and stir consumer confidence to bet on crypto products.
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