Gary Gensler, head of the Securities and Exchange Commission announced the organization will take action against risks faced by investors trading cryptocurrencies. In a recent speech, he said investors are not accessing enough information to judge the risk, and asserted “I worry a lot of people will get hurt.”
Lack of Support
In the allocution, Gensler pointed to the lack of transparency and clear regulations for those wanting to dabble into the crypto world and prompted Congress to give regulators the power to rewrite the current financial rules on crypto.
He also asked for more monetary and staff resources as the SEC has moaned about the Congress’ lack of support. “We need additional congressional authorities to prevent transactions, products, and platforms from falling between regulatory cracks,” he was quoted as saying on CNBC.
The most urgent action to take, he said, is to create clearer definitions for some of the most basic terms to align crypto with the financial framework, to determine, for instance, whether Bitcoin is a commodity or if assets being traded on cryptocurrency exchanges are securities.