United states Chairperson for Securities and Exchange Commission (SEC) Gary Gensler has urged regulators to Shield Crypto investors. Gary Glenser feels trading platforms deserve proper protection under the umbrella of consumer protection. He made this revelation during a virtual presentation at an event organized by Pennsylvania Carey Law School University.
Accordingly, the SEC boss added that his team members are working hand in hand with Commodity Futures Trading Commission(CFTC). This effort aligns with America’s financial regulator’s policies to regulate trading outlets that provide securities and merchandise. However, regulators in the United States are yet to officially analyze what makes up security. This has led to firms’ confusion in respect of their cryptocurrency security status.
Furthermore, the SEC boss stressed that small-scale investors are open to scams and market irregularities due to lack of protection. According to Gary Glenser consultation is ongoing to create and administer outlets for the trading of securities and none securities.
Recently, the SEC boss described crypto possession as liabilities. According to him, crypto is still a dangerous investment due to lack of regulatory framework. Interestingly, the regulatory framework has sparked reactions as regard agencies supervising crypto exchange.
The SEC believes Crypto is classified as security while Derivatives exchanges, FTX for instance desires CFTC to be in control. Explaining further, Gary Gensler stated that crypto token involves a group of entrepreneurs raising funds through the public in return for interest. According to him, it is the hallmark of investment partnership and security under the United States government.
Increasing calls for crypto protection law by the SEC boss
Additionally, Gary Glenser has overtly campaigned for more laws to protect crypto investors in and outside the U.S. However, this campaign has met with objections from crypto stakeholders. According to them, such regulations would stop innovations that result in achieving the opposite. Also, budgets ratified by Security and Exchange Commission become given to substantial investors only, leaving retailers with limited alternatives.
The situation of crypto in the U.S
Lastly, there’s a division in the United States of America on how to best regulate cryptocurrency. Nevertheless, President Joe Biden recently release an executive order that urged government agencies to make recommendations about the regulatory framework. Consultations are ongoing and the result is expected to be available in the coming weeks.