Gary Gensler: SEC Needs Additional Authority to Regulate Crypto

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), says the agency needs additional authority and resources to regulate the crypto industry. He wrote this in response to a request from Senator Elizabeth Warren.

Gensler sent her the letter on August 5, but Warren опубликовала it on the 11th, after the Senate sent the infrastructure bill to the House of Representatives без поправок о криптовалютах.

The letter echoes заявлениями by the regulator’s head at the Aspen Security Forum 2021.

In his reply to the senator, Gensler noted that crypto investors are not adequately protected. He explained that the market for digital assets comprises centralized and decentralized platforms where users can trade, lend or borrow tokens.

Most of these assets, in his view, are unregistered securities.

“I think these platforms may fall under the securities laws, and for some of them there may also be applicable rules relating to commodity exchanges and banking activity. This raises many questions about investor and consumer protection, taking action against illicit activity and ensuring financial stability”, wrote the head of the SEC.

Separately, Gensler highlighted the market for stablecoins, with a total value of more than $110 billion. In July, three-quarters of cryptocurrency trading volume was in pairs involving “stablecoins”, he said.

He added that stablecoins could potentially be used for money laundering, tax evasion, sanctions evasion and other illicit activity.

“I believe we need additional authority to prevent transactions, products and platforms from falling through regulatory gaps. We also need more resources to protect investors in this growing and volatile sector”, stressed Gensler.

As priority areas for lawmakers, he highlighted cryptocurrency trading, lending and DeFi.

In April 2021, Gensler led the SEC. In May, he urged Congress to provide clarity in regulating the crypto industry.