December 11, 2023

Gary Gensler: “The cryptocurrency market is not much different from the capital market”

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Gary Gensler: “The cryptocurrency market is not much different from the capital market.”

Chairman of the Securities CommissionUS securities and exchanges (SEC) Gary Gensler is confident that the cryptocurrency market is not particularly different from other financial markets, and is fully within the authority of the regulator.

Gary Gensler published an articlein the Wall Street Journal in which he outlined his thoughts on how crypto assets should be regulated. In his view, regulators and investors alike have no reason to treat the digital asset market differently from other capital markets just because it uses different technology.

"Recent market events show whyIt is important that crypto firms comply with securities laws. In recent months, some crypto lending platforms have frozen their investors' accounts or gone bankrupt. When it comes to bankruptcy, these investors have to go to court,” Gensler writes.

The head of the SEC emphasized that no matterwhat a financial product is, it is the economic realities that determine whether it is a security. There are other types of problems, but Gensler said the SEC can handle them. To do this, crypto companies need to constantly exchange information with the regulator - this will benefit both investors and the entire cryptocurrency market.

“In the meantime, the SEC will perform the functionsregulator Just like with seat belts in cars, we need to provide standard protection for investors in the cryptocurrency market,” he added.

Previously, the head of the SEC said that cryptocurrency lenders should be regulated similarly to investment companies.