- Need for Crypto Regulation
- Exclusion of Bitcoin from Tighter Rules
- Problems and Challenges in the Crypto Industry
SEC Chairman Gary Gensler calls for stricter measures to protect investors in the cryptocurrency market. He made these remarks during an interview on CNBC’s Squawk Box.
Need for Crypto Regulation
Gensler cited the failures of major crypto companies such as FTX, Three Arrows Capital, and Celsius in 2022. These failures, along with recent convictions of figures like Sam Bankman-Fried, exemplify the instability of the industry. According to Gensler, proper disclosures are necessary for crypto firms to protect investors.
Exclusion of Bitcoin from Tighter Rules
Gensler reiterated his view that the majority of cryptocurrencies should be classified as securities and called on crypto exchanges to register with the SEC. However, he excluded Bitcoin from this category, believing it does not fall under the same regulations. Companies offering Bitcoin products now have means to explore their options via exchange-traded products (ETPs).
Problems and Challenges in the Crypto Industry
Gensler also mentioned the legal issues faced by other crypto company leaders, like former Celsius Network CEO Alex Mashinsky. He pointed out that several former industry icons are now being persecuted by the law. The collapse of these companies highlights the need for enhanced regulation. Gensler emphasized that consumer protection is key to advancing innovation in the crypto market.
SEC Chairman Gary Gensler emphasized the need for stricter measures to protect investors in the crypto market, pointing to recent failures of major companies as examples of instability. Gensler believes that without proper rules, the industry will continue facing challenges.
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