In a recent interview with Bloomberg, Gary Gensler, former government official and current chairman of the US Securities and Exchange Commission stated that he is considering a comprehensive regulatory framework for the crypto market.
As he sets his sights on tougher regulation for the $1.6 trillion digital asset sector, Gary Gensler has said crypto can only become mainstream if authorities spell out clear standards. Investors require stronger fraud protection and digital assets can help the economy grow and become more extensively used according to Gensler.
The SEC is also looking into at least seven areas of the economy, including decentralized finance and stablecoins, Gensler also stated that he intends to concentrate on crypto exchanges specifically.
Gensler, who taught a cryptocurrency course at MIT, described the technology as neutral or even intriguing but said he is not neutral on investor protection.
Regulating crypto exchanges, according to Gensler, maybe the best approach to acquire more control over cryptocurrency. In May, he encouraged Congress to work on legislation that would give the Securities and Exchange Commission (SEC) greater authority over trading venues.
When it comes to crypto regulation, one of the most important considerations is whose jurisdiction the industry belongs under. Regulators believe bitcoin is more akin to a commodity than security, thus keeping the world’s most popular cryptocurrency beyond the SEC’s jurisdiction.
Significant portions of the crypto community reacted positively to Gensler’s nomination as SEC chair, implying that his regime will offer better regulatory certainty than previously seen.
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