Gary Gensler urges U.S. Congress to clarify regulation of Bitcoin exchanges

The U.S. Congress could play a significant role in shaping clear rules for regulating the cryptocurrency industry, including Bitcoin exchanges. This, according to the SEC chair Gary Gensler, who said at a House Financial Services Committee hearing.

The official argued that the absence of a regulatory framework risks the safety of users of crypto exchanges.

“I believe only Congress can really solve this problem. We should consider strengthening investor protections,” the head of the regulator said.

Gensler also added that the SEC is examining the impact of social media on financial markets.

“There are risks that bad actors could attempt to send signals to manipulate the market. We continue to deepen our understanding, resources and capabilities in this area,” the agency head said.

He also mentioned the role of online communities such as Reddit in stock pumping, but added that he is not seeking to curb free speech. According to Gensler, it is important to determine whether these channels have been used by bad actors.

Earlier, when he was a candidate to head the SEC, spoke positively about blockchain, Bitcoin and cryptocurrencies. He also called digital gold ‘a catalyst for change’.

On April 14, 2021, the U.S. Senate approved his nomination to head the agency.

SEC Commissioner Hester Peirce said that a Gensler chairmanship could be “a very productive period” for the crypto industry.

Subscribe to ForkLog news on VK!