Gary Gensler, chairman of the U.S. Securities and Exchange Commission, or SEC, reiterated his call for protecting investors in securities offered by crypto firms.
Speaking virtually at the Robert F. Kennedy Human Rights Compass Investor Conference on Tuesday, Gensler said The SEC will use its existing powers to focus on cryptocurrency projects and exchanges, warning people of potentially “too good to be true” returns on investment. According to Gensler, most tokens on the crypto market today fall under the SEC’s regulatory mandate, with the same disclosure requirements as securities.
“Once again, we have seen that lending platforms — they operate a bit like banks,” Gensler said. “They say, ‘Give us your cryptocurrency. We will give you a big profit.” [….] How does someone offer 4.75% on the market today and not reveal a lot of information?”
The SEC chairman added:
“If it seems too good to be true, it may very well be too good to be true.”
When asked about the recent volatility in the crypto market, Gensler said he remains “intrigued by the technology,” but did not directly say whether the SEC would approve a Bitcoin (BTC) exchange-traded fund in the near future. future. He added that most projects in the crypto space are “likely to fail,” reiterating his warning of high returns without proper disclosure to the public.
SEC Chairman: Retail crypto investors should be protected
The SEC chairman’s remarks come after Senators Cynthia Lummis and Kirsten Gillibrand proposed a bill that, if passed, would give the Commodity Futures Trading Commission “clear authority over applicable digital asset spot markets,” unlike the SEC. Both U.S. lawmakers met with Gensler in June to discuss finding the best regulatory balance between the CFTC and the SEC regarding cryptocurrencies.
Many in the crypto space have been critical of the lack of regulatory clarity in the United States, which could be subject to interpretation by several government agencies. Gensler has repeatedly urged crypto projects to register with the SEC to ensure investor protection.
Credit : cointelegraph.com