U.S. Securities and Exchange Commission (SEC) chairman, Gary Gensler, says that crypto won’t end well if it stays outside regulations. His statement may be in reply to the wide criticisms that has greeted the commision’s approach towards enforcing strict regulations of the crypto industry.
SEC Chair Says Crypto Won’t End Well If It Stays Outside Regulations
Gary Gensler broke his silence on crypto regulations on Monday while speaking with the former federal prosecutor, Preet Bharara in an interview at Code Conference, Beverly Hills. Explaining why the SEC does what it does, Gensler noted that a lot of people will end up being hurt should cryptocurrency markets be allowed to function outside the purview of regulators. It will surely not end well, he repeated.
He explained further on the need to keep the crypto market in check, citing the fact that the industry has seen a 10-fold growth in the past one and a half years. Now, this growth he believes is not only in terms of the asset value of the industry, but also in the underground lendings and many more. These and many more are reasons why the SEC believes that crypto won’t end well it it stays outside regulation. So he insists that the SEC laws and policy frameworks are only there to ensure that they don’t end up with a problem on their hands, where a lot of people will be getting hurt.
Back in August, Gensler made bold to say that the cryptocurrency industry will not flourish or achieve any of its potential by trying to stay outside regulations. And just a week ago, former U.S. Treasury Secretary, Larry Summers also lent his voice to the ongoing debate that cryptocurrency will do better regulated rather than being treated like an isolated island.
He added that at the moment, there’s just no enough protection for investors in crypto trading, finance, issuance, or even lending. Gensler used a phrase that compared the crypto field to the Wild West or the old world of ‘buyer beware’ that used to exist before the enactment of securities laws.
SEC’s enforcement-centric approach to crypto regulation has received a lot of criticisms though. Including one from SEC’s very own Commissioner Hester Peirce. And also just last week, Senator Pat Toomey wrote a letter to Gensler asking for clarity on crypto regulation.
Source: Bloomberg News