SEC Chair Urges U.S. Congress to Cooperate on Bitcoin-Exchange Regulation

The best way to close regulatory gaps around cryptocurrencies is to develop a regulatory framework for bitcoin exchanges, said Gary Gensler, chair of the U.S. Securities and Exchange Commission, at a hearing of the U.S. House of Representatives.

According to Gensler, the glut of projects in the crypto industry makes it harder to protect users, and therefore oversight of bitcoin exchanges should be strengthened.

“I think we could work with Congress to try to protect investors where these — sometimes commodities, sometimes securities — are traded,” the official said.

Gensler said he expects to provide protections similar to those applied on the New York Stock Exchange and Nasdaq.

The chairman noted that developing and enforcing these rules may require additional funding for the agency. He said the regulator currently spends about 16% of its budget on new technologies — cryptocurrencies create additional risks that require greater resources.

As noted, Gensler called investor protection, including cryptocurrencies, one of the main goals of federal financial regulators.

Earlier, the official urged Congress to bring clarity to the regulation of bitcoin exchanges. He stressed that the absence of a regulatory framework threatens the safety of their users.