SEC Chairman Gensler Discusses Crypto Regulation Following FTX Drops

• A U.S. congressman is looking into whether Gensler helped the FTX CEO .
•  According to Gensler, Platforms for crypto trading and lending should “come in, talk to us, and become registered.

In an interview, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), discussed cryptocurrency regulation and the demise of cryptocurrency exchange FTX.  The chairman explained that investors suffer when cryptocurrency exchanges “mix up a bunch of customer money” without disclosure and “leverage borrowing against it,” without saying whether the SEC is looking into FTX. He was also questioned over the watchdog’s investigation into Kim Kardashian, which is, in comparison to FTX, a significantly smaller matter.

Gary Gensler stated:

 I think that investors need better protection in this space. But I would say this, this is a field that’s significantly non-compliant, but it’s got regulations, and those regulations are often very clear, and we have multiple paths.

U.S congressman investigating Gensler

Gensler frequently advised cryptocurrency trading and lending services to “come in, talk to us, and become registered.” Congressman Tom Emmer tweeted after Gensler’s interview that his staff had heard rumors that the SEC chairman had assisted Bankman-Fried and FTX in finding legal ways to acquire a regulatory monopoly.

Four congressmen accused Gensler of “hypocritical mismanagement of the SEC” last week, emphasizing his refusal to practice what he preaches. This week, two lawmakers expressed “deep concern” that the SEC is enacting rules too quickly and without adequate feedback. Gensler has also been chastised for taking an enforcement-focused approach to regulating the crypto industry.