The chair of the US Securities and Exchange Commission is warning that cryptocurrency trading platforms are putting their own survival at risk unless they heed his call to work within the nation’s regulatory framework.
Gary Gensler told the Financial Times that while he remained “technology neutral,” crypto assets were no different than any others when it came to such public policy imperatives as investor protection, guarding against illicit activity and maintaining financial stability.
“At about $2 trillion of value worldwide, it’s at the level and the nature that if it’s going to have any relevance five and 10 years from now, it’s going to be within a public policy framework,” he said. “History just tells you, it doesn’t last long outside. Finance is about trust, ultimately.”
Gensler expressed disappointment with the industry’s response to his suggestion that trading platforms register with the SEC on the grounds that a sufficient number of cryptocurrencies qualify as securities.
“Talk to us, come in,” he said. “There are a lot of platforms that are in operation today that would do better engaging and instead there is a bit of... begging for forgiveness rather than asking for permission.”
Cryptocurrency trading platforms are a big business in the US—New York-listed Coinbase reported a $1.6 billion profit in the second quarter. However, it is unclear which US financial regulator is supposed to oversee them. Gensler has called on Congress to make such authority more...
Read Full Story: https://arstechnica.com/tech-policy/2021/09/crypto-platforms-need-regulation-to-survive-says-sec-boss/
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