SEC Head Says Crypto Needs Regulation To Survive: Report
Gary Gensler, the SEC Head says that crypto needs more regulation in order to survive and he has been calling for the crypto space to work with the regulators for quite some time as we reported in our cryptocurrency news before.
The Financial Times reported that SEC head GaryGensler asked Congress to empower his agency to be better in governing the market but it is not clear yet which agency has oversight of the crypto industry so regulators classify BTC as more of a commodity than security. It is estimated that less than 10% of the world knows about crypto but it is still a large enough number that prompted regulators to start finding new ways to regulate these assets. It is no longer just retail investors that are trying to make some quick profit on the volatile markets. The investors also thrown their hats in the ring like Michael Saylor did with Microstrategy.
Gensler thinks that if the markets grow, they will need to be regulated. The SEC chairman explained that regulation will provide more trust in the market which is important if the markets don’t want to become less relevant over time. Gensler’s main focus is on trading platforms given that this is where most of the activities in teh market are carried out. Gensler suggested earlier that crypto platforms should register with teh Securities and Exchange Commission which was met with disdain from the investors that do not want government control over crypto. Chairman Gary Gensler urged these platforms again to register with regulations:
“Talk to us, come in. There are a lot of platforms that are in operation today that would do better engaging and instead there is a bit of begging for forgiveness, rather than asking for permission.”
There have been other crackdowns on exchanges in the crypto space. Most prominent of these were teh crackdowns on Binance by other countries. BLockFi locked in a showdown with regulations in three states and most recently Uniswap was investigated by the SEC. Regulation is not an easy topic in the crypto space but it does not make it any less important. Exchanges realized that if they want to grow in the near term, they are going to have to work with the regulators. To this end, Sam Bankman Fried the CEO of FTX exchange said that he was taking regulation very seriously.
Source Crypto Total Market Cap on TradingView.com
The CEO believes that working with the regulators will ensure the survival of the industry and added that the exchanges will work with regulators to ensure that the rules being created do not harm the market and kill the use for it in teh first place. It is still not clear where most products fall when it comes to the regulatory practices but Gensler thinks that the decentralized finance platforms fall under the purview of the SEC.