The US SEC Chairman Gary Gensler, in testimony before the U.S. Senate, offered some insight into how he sees crypto regulations will look. Gensler included that most crypto platforms will need to register with the SEC. Gensler says that his opinions are only that of his own and do not represent other members of the SEC.
“U.S. holds an impressive 38% of the global capital markets.”
US SEC chairman opened his statement by saying that the United States holds an impressive 38% of the global capital markets, which cannot be taken for granted. He then listed some broad themes representing the SEC’s agenda, namely market structure, predictive data analytics, issues, issuer disclosure, and investment management. The SEC head also admitted that today’s regulation is not in keeping with the pace of technological development, indirectly pointing to the likes of Robinhood and other crypto trading platforms. Crypto regulations still remain in a grey area in most parts of the world.
Gensler also talked specifically about the crypto market.
Under the market structure, the SEC chairman also devoted some time to talking specifically about the crypto market. Gensler believes that many participants are operating outside regulations that protect investors and guard against illicit financial activity. Gensler also noted that the agency is working with the U.S. Commodity and Futures Trading Commission, the Federal Reserve, Department of Treasury, the Office of the Comptroller of the Currency, and other members of the President’s Working Group on Financial Markets. All of these groups have discussed cryptocurrency regulation. He calls for platforms and projects to talk to the SEC and says that there could be several hundreds of tokens that likely qualify as securities.