Gensler maintains that crypto exchanges need to register with the SEC

US Securities and Exchange Commission (SEC) Chair Gary Gensler has severally pointed out that cryptocurrency exchanges and trading platforms cannot be treated differently from traditional stock exchanges.

And amid the increased regulatory spotlight on crypto, helped by recent events, the SEC boss has renewed that call.

In a video he shared on Twitter, Gensler says crypto platforms will better protect customers – and see further growth as a result – if they embrace regulatory compliance.

According to Gensler, digital asset platforms (like regulated stock markets) can help protect millions of users against aspects such as “manipulation, fraud and front running,” if they are registered and properly regulated.

With so many retail customers trading on crypto platforms, we should make sure that those platforms offer similar protections,” he noted, adding that SEC staff have been mandated to pursue registration of these crypto platforms. The key, he explained, is to ensure the exchanges are regulated as securities platforms where appropriate.

 

Conflict of interest?

Gensler also pointed out that with crypto exchanges also acting as market makers, potential conflict of interest could harm investors. As such, he has asked staff at the securities watchdog to find what’s possible with regard to “segregating out” the market making functionality from the digital asset platforms.

If the traditional exchanges don’t do this – market making – why should crypto platforms be any different?

Look, there’s no reason to treat the crypto market differently, just because a different technology is used,” he pointed out. 

Gensler’s comments come days after he reiterated the need to have crypto exchanges and lending platforms offer more disclosures as part of basic consumer protection. They also come amid reports the SEC is investigating crypto exchange Coinbase over the listing of securities tokens.

Coinbase refutes these claims and alongside several industry players, say the agency is engaging in “regulation by enforcement.”

All Dutch and English crypto news!

Fake employees and social attacks: Crypto recruiting is a minefield

Hiring in the crypto world can be difficult. Web3 companies are often disorganized and lack HR departments. Developers sometimes want to remain anonymous - even...

Gnosis (GNO) the only coin that is up today: here’s why

The crypto market has taken a significant dive today with all cryptocurrencies including the likes of Bitcoin and Ethereum dropping by about 9% at the...

Huobi explains what went wrong with HUSD after stablecoin is back on track

After recovering the HUSD stablecoin's dollar peg, crypto exchange Huobi explained what caused the short-term liquidity problem and assured users that it has been resolved.  On...

Biden is hiring 87,000 new IRS agents — and they’re coming for you

The Inflation Reduction Act, signed into law this month by President Joe Biden, empowers the IRS with nearly $80 billion in new funds. The world's...

Beste exchanges

Koop je crypto bij Bitvavo