SEC’s Chairman Gary Gensler calls for improved protection for all crypto investors after calling Bitcoin a scarce and speculative store of value so let’s see more in our latest cryptocurrency news.
The recently-appointed SEC Chair Gary Gensler calls for better protection in the crypto space as he believes that the industry and the people involved need more advanced protection. He also referred to BTC as a speculative store of value and called for an update of the existing regulation in the US. The cryptocurrency boom that started in 2020 which saw the prices booming and the demand skyrocketing, caught the attention of the watchdogs and regulators started dabbling with it but there are still not good enough rules brought up.
So far, the US failed to propose a valid answer that wasn’t criticized by the industry or higher authorities and now the SEC chairman touched upon the topic during a recent interview with CNBC’s Squawk Box. He outlined the necessity of providing investors with more protection on the markets as volatile and popular lately in the crypto space:
“And there are investors that want to trade that, and trade that for its volatility, in some cases just because it is lower correlation with other markets. I think that we need greater investor protection there.”
Gensler spoke about BTC as a speculative and scarce store of value. Before he was named the new SEC, he taught students at the MIT Sloan School of Management about blockchain technology, public policies, and digital currencies. The SEC Chair touched upon the main role which the agency he runs in the financial field and said that the global finances evolved substantially in the past decade but the regulators didn’t follow along. This is true for situations where influential people use social media channels to promote the assets and the agency now has to update and freshen up the rules while investors have the right to speak out.
He urged the commission to stay neutral and continued:
“To the extent that something is a security, the SEC has a lot of authority. And a lot of crypto tokens – I won’t call them cryptocurrencies for this moment – are indeed securities.”