Gary Gensler: Regulation Is Necessary for the Survival of Cryptocurrencies

Cryptocurrencies will not stay for long outside the framework of government policy, because “finance is trust”. This view was expressed by Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), in an interview with the Financial Times.

He stressed that regulatory frameworks are necessary for crypto trading platforms to survive.

Digital currencies must meet the same investor-protection and anti-money-laundering requirements as traditional assets, Gensler explained.

According to him, the cryptocurrency market’s capitalization has already surpassed $2 trillion, and if it has any relevance in five or ten years, it will be within the framework of government policy.

“History shows that outside [the frameworks] it does not last long. Finance is, in the end, trust,” added the SEC chair.

In April 2021, took the helm of the agency. In May, he to clarify crypto-industry regulation.

Later, the head of the Commission said that platforms offering access to tokenized stocks must report to the regulator.

In August, Gensler warned of tighter regulation of stablecoins and DeFi. In his view, decentralization does not provide immunity from SEC oversight.

Subscribe to ForkLog news on VK.