The chairman of the United States Securities and Exchange Commission, Gary Gensler, is once again urging crypto firms with securities to register with the regulators. To ensure the protection of investors, Gensler has doubled down on the crypto businesses to meet the registration requirements of the state, and add their firms with the regulatory body.
Protecting the investor’s interest is the priority of the SEC, in recent reports, the Chairman of the regulatory agency prepared a statement for his testimony at the Senate Committee on Banking, Housing and Urban Affairs organized for September 14.
In his statement, Gensler suggested that crypto platforms and projects should sit down and discuss matters with the regulatory agency. He explained that crypto platforms have more than a hundred tokens, each has its own legal status that relies on the circumstances of its native platform. He added it is unlikely that a platform, with more than a thousand tokens, will have zero securities.
In addition to the tokens, the SEC chairman stated that since crypto platforms are innovative in nature and constantly evolves, it is possible that the industry can act as a catalyst for change in the financial sector. A change in the financial sector is possible, but not if crypto continues to operate outside the legal framework established by lawmakers, something that many crypto firms and prominent figures in the United States have argued is due to the lack of clarity in the regulations set up by the lawmakers.
The SEC Chairman made it clear that if crypto trading platforms are to operate in the state, they have to continue under the lawmaker’s framework. Crypto firms need to register their platforms or they will be qualifying for an exemption.
During the announcement, Gensler stated that the SEC is now working with the Commodities Futures Trading Commission, or the CFTC, to ensure the protection of investors in the crypto markets. The SEC is also collaborating with the Federal Reserve, the U.S Department of Treasury, the Office of the Comptroller of the Currency, and President Joe Biden’s Working Group in the Financial Sector. Gensler believes that the collaborations will help in the development of a policy framework suited to crypto firms in the United States.
A previous report in August indicates that Gensler hoped to implement crypto-based policy changes surrounding decentralized finance, stablecoins, exchange-traded funds, and token offers
