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Gary Gensler Expects Crypto Exchanges To Work With Regulators

The SEC Head Gary Gensler expects crypto exchanges to work with regulators, suggesting that lending platforms should voluntarily work with the agency as well under the current securities laws so let’s read further in our crypto latest news. The US SEC Chairman Gary Gensler expects crypto exchanges and lending platforms to voluntarily work with the […]

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Gary Gensler Expects Crypto Exchanges To Work With Regulators

The SEC Head Gary Gensler expects crypto exchanges to work with regulators, suggesting that lending platforms should voluntarily work with the agency as well under the current securities laws so let’s read further in our crypto latest news.
The US SEC Chairman Gary Gensler expects crypto exchanges and lending platforms to voluntarily work with the agency under the current securities laws. Speaking in an interview with Bloomberg, he stated that he and the SEC are trying to pursue investor protection explaining that if this means bringing bigger enforcement actions they will do it. He continued however that there could be more room for a form of self-regulation of voluntary moves from exchanges to approach the SEC and express their willingness to comply. Gensler noted:
“It would be better to have these platforms come and work with us and come under the securities laws.”

The laws in question were created in the 1930s and most of the crypto community members in the US said there is a poor fit for crypto and today’s evolving technologies. Gensler however dismissed the need for a regulatory change:
“I think the laws are pretty clear, [as they were] laid out in the 1930s. And we have an ability to work with these exchanges using various authorities to basically tailor some of these.”
He added that crypto exchanges and lending platforms both operate differently than the traditional New York Stock Exchange. He also said that the SEC stance remains firm claiming at most of the tokens traded on the exchanges have attributes of securities:
“They’re raising money from the public and the public is anticipating profits based upon the efforts of others. […] It comes down to this: Are you raising money from the public and the public’s anticipating profits based on the efforts of others?”
However, he concluded that most coins could qualify as commodity tokens and he even suggested that those that do classify as commodities will not remain out of the SEC remit:
“We’re going to work with the Commodity Futures Trading Commission where there are some [coins] that are commodity tokens. Because while many of these are securities some may be under their remit and we work together as two federal agencies.”

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