The cryptocurrency market investor needs more protection in the U.S., including possible regulations for cryptocurrency brokers, Securities and Exchange Commission (SEC) chairman Gary Gensler said on Thursday (6). who became the president of the federal securities regulator, Gensler said the SEC's authority is restricted to securities and products or asset managers that can invest in cryptocurrencies. But he suggested that Congress could play a role in bringing greater regulatory clarity, especially around exchanges. "At the moment, these exchanges do not have a regulatory structure at the SEC or our sister agency, the Commodity Futures Trading Commission (CFTC)." , he said. "At the moment, there is no market regulator around these cryptocurrency exchanges and therefore there is really no protection from fraud or manipulation." However, Gensler did not specify how the new rules around crypto exchanges should be.
Want to earn Bitcoins?
We help you with that.
Open a free account!
His comments, which came in response to a question about MP Patrick McHenry's digital assets, also mentioned a proposed custody regulation, which the SEC chairman said he hoped would move forward.McHenry, who sponsored a bill that deals with how SEC and CFTC may share cryptocurrency supervision, asked how Gensler could improve regulatory clarity around digital assets.
Thursday's hearing was the third held by the Chamber's Financial Services Committee that analyzed the regulatory response to the GameStop stock price jump earlier this year. Gensler did not address cryptocurrencies in his pre-written opening comments, in instead it focused on aspects of GameStop and other recent market events, such as the collapse of Archegos Capital. The new SEC chairman spoke generally about the role of technology and social media in the public stock market. “Technology can bring greater access to our capital markets, ”said Gensler in his opening speech. He mentioned the role of online communities like Reddit in driving stock prices, but claimed he was not interested in restricting freedom of expression – instead , Gensler said he is interested in seeing if malicious actors take advantage of these communities to manipulate markets. The SEC plans to release a report this summer reading the GameStop stock frenzy and market reaction, said Gensler.