SEC Chairman Gary Gensler emphasized that the crypto market is vulnerable to manipulation and investors are vulnerable to attack-Regulate Bitcoin News

The Chairman of the US Securities and Exchange Commission (SEC) Gary Gensler called for stronger investor protections in the crypto market. “This asset class is rife with fraud, scams and abuse in certain applications,” he said. “In many cases, investors cannot obtain strict, balanced and complete information about tokens or trading and lending platforms.”

Gary Gensler hopes to gain more investor protection in the crypto market

SEC Chairman Gary Gensler expressed his concerns about the cryptocurrency market at the investor advisory committee meeting last week.

The Investor Advisory Committee established under Section 911 of the Dodd-Frank Act advises the SEC on regulatory priorities, including “measures to protect investor interests, promote investor confidence, and the integrity of the securities market.”

In the speech, Gensler shared some concerns about the crypto market.

He first admitted that “Satoshi Nakamoto’s’Bitcoin White Paper’ and the subsequent crypto market are catalysts for change.” In August, Gensler Said The “innovation is real” by the anonymous creator of Bitcoin, “it has been and may continue to be a catalyst for changes in the financial and monetary fields.”

Quoting the market value of all cryptocurrencies, Gensler told the Investor Advisory Committee: “This is an asset class that belongs to a public policy framework that takes care of investors, prevents illegal activities, and protects our financial stability.” He believes:

Unfortunately, this asset class is rife with fraud, scams, and abuse in certain applications…In many cases, investors cannot obtain strict, balanced, and complete information about tokens or trading and lending platforms.

“Currently, we don’t have enough investor protection in cryptocurrency,” the boss of the US Securities and Exchange Commission described. “The American public is buying, selling and lending cryptocurrencies on trading, lending, and decentralized finance (defi) platforms. These platforms have major gaps in investor protection.” He emphasized:

This makes the market vulnerable to manipulation. This makes investors vulnerable. If we do not solve these problems, I worry that many people will be harmed.

Gensler went on to explain that many encrypted “tokens are offered and sold as securities.” Commenting on whether tokens are considered securities, he said: “There is actually a lot of clarity in this regard. In the 1930s, Congress established the definition of securities, which included about 20 items such as stocks, bonds, and notes.”

The SEC chairman continued: “One of the projects is an investment contract,” and pointed out that many tokens in the crypto market “may be unregistered securities that do not require disclosure or market surveillance.”

Gensler believes:

It is best not to wait for the third channel (encrypted channel, where all tokens, transactions, and loans are in progress) to have a major leak to solve the investor protection problem.

The chairman of the SEC pointed out at the end of his speech that crypto platform operators and token issuers should “come in and talk to the staff of the SEC”.

He added: “Historical financial innovation will not flourish outside of our public policy framework. If this field is to continue, or to realize its potential as a catalyst for change, we better incorporate it into the public policy framework.”

What do you think of SEC Chairman Gary Gensler’s comments on investor protection and crypto market manipulation? Please let us know in the comments section below.

Image Source: Shutterstock, Pixabay, Wikimedia Commons, CNBC TV18

Disclaimer: This article is for reference only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. The company or the author is not directly or indirectly responsible for any damage or loss caused or claimed to be caused by using or relying on any content, goods or services mentioned in this article.

Source link