SEC against the regulatory Wild West – The predicate of the US Securities and Exchange Commission (SEC) insists on the need to regulate cryptocurrencies. Such regulation would benefit not only investors, but also the development of the sector.
Nothing against Bitcoin, but priority to investor protection
US SEC Chairman Gary Gensler continues his campaign to raise awareness about the need for cryptocurrency regulation. Speaking on Fox Business on August 19, 2021, Gensler said that crypto-currencies will not reach their full potential if the industry “tries to stay out of our laws,” including those on money laundering, tax compliance, and “what we focus on at the SEC – investor protection.” Gensler stressed the Commission’s neutrality “with respect to technology, Bitcoin and other crypto tokens,” but that the agency is “not neutral on investor protection.”
He also criticized DeFi projects that are actually centralized and then, he said, have to register with the SEC. Despite this infatuation with cryptocurrency regulation and these attacks on many DeFi protocols, Gensler is not a cryptophobe. He has called cryptocurrencies andBitcoin (BTC) “innovative technologies” that can catalyze changes in the financial and monetary fields. However, the SEC chairman is concerned about the risks in a rapidly evolving industry.
SEC and cryptocurrency regulation: power and limits
In early August 2021, the SEC chairman called on Congress to give his agency more authority to oversee cryptocurrency loans as well as DeFi platforms that allow lenders and borrowers to transact in cryptocurrencies without having to go through banks:
“If we don’t address these issues, I’m afraid a lot of people will get hurt.”
Gensler also pointed out at the time the SEC’s regulatory authority over many types of cryptocurrencies:
“Equity tokens, a stable value token backed by securities or any other virtual product that provides synthetic exposure to underlying securities … are subject to the securities laws.”
Do we really need a new regulatory framework for cryptocurrencies and expand the SEC’s powers to provide greater protection for investors? Gensler’s plea contrasts with the <a href=”https://journalducoin.com/actualites/banque-banques-contre-bitcoin-roi-cryptos-not-needed-regulation-specifically/” target=”_self” rel=”noopener”>conclusion of the study conducted by researchers at the Bank for International Settlements (BIS), which states that additional legal coverage for new finance is simply not necessary.
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