US SEC Chairman Says Greater Investor Protection Needed On Crypto Exchanges

By John McCrank

(Reuters) – US Securities and Exchange Commission chairman Gary Gensler said on Thursday he wanted to see more regulation regarding cryptocurrency exchanges, including those that only trade bitcoin and are currently not obliged to register with his agency.

“This is a fairly volatile, one could say very volatile asset class, and the investing public would benefit from greater investor protection on crypto exchanges,” he said during the annual conference of the Financial Sector Regulatory Authority.

His comments came a day after a sharp sell-off in Bitcoin amid concerns over tighter regulations in China and unease over the extent of leveraged positions among investors.

Gensler said he had asked Congress to look into the matter.

Crypto tokens that are issued in the same way as conventional investment tokens fall under the jurisdiction of the SEC, and the regulator has taken about six dozen enforcement actions against those who are not registered with the agency. Gensler added.

“And there are hundreds of chips out there, so we’re going to continue to look and do what we can in this space,” he said.

The SEC must also update its rules regarding cryptocurrency marketing and use in the 2020s, including through game-like features on mobile apps offered by retail brokers, robo-advisers, and management companies. heritage, Gensler said.

“We all know these mobile apps can benefit from better access and real improvement, but at the same time we need to refresh ourselves and make sure our rules properly govern communications with the public,” he said. he declares. .

(Reporting by John McCrank in New York, editing by Chris Reese and Aurora Ellis)

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