Cryptocurrency Should Be Regulate As Traditional Market-Gary Gensler

• SEC Chair Gary Gensler clarified his stance on cryptocurrency markets.
• The SEC actions appeared following the failure of the Terra (LUNA) stablecoin.

Gary Gensler, former investment banker, and 33rd chair of the US Securities and Exchange Commission (SEC) made the statement about how cryptocurrency assets need to be managed. The official opinion statement was published in the Wall Street Journal on Friday.

SEC Chairman Gray Gensler said that;

There’s no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology…

Gensler mentioned recent market volatility, in which individual CeFi lenders frozen withdrawals and/or declared bankruptcy, and added that situations like these are exactly the reason why crypto companies should abide by securities regulations.

Following the statement, SEC Chairman confirmed his stance on cryptocurrency exchanges in a tweet by stating that the crypto market should be treated in the same manner as traditional capital markets. Also, he underlined that no matter the financial product whether it be an app, loan platform, cryptocurrency exchange, or decentralized finance (DeFi) platform.

SEC Eyes on Cryptocurrency Exchanges

The SEC actions appeared following the failure of the Terra (LUNA) stablecoin. Although, the legal consequences for top cryptocurrency exchanges and trading platforms have surfaced. Cryptocurrency exchange Coinbase is continuously probed by SEC indicates that the security agency is monitoring all cryptocurrency exchanges’ moves.

Also, the US agency has accused Ripple Labs, co-founder Christian Larsen, and CEO Bradley Garlinghouse of secretly selling XRP, which they claim to be security. Furthermore, some cryptocurrency lending companies have experienced the freezing of investor accounts or declared bankruptcy.

Recommended for you