SEC Chairman Gary Gensler’s speech to the Senate began. Press the play button below Live how can you look.
Gensler’s written statements regarding cryptocurrencies sent to the Senate were as follows:
“Currently, much of the crypto space does not operate within regulatory frameworks that protect investors and consumers, protect against illegal activity, and ensure financial stability.
Currently we do not have adequate protection for investors in the financing, issuance, negotiation or loans of cryptocurrencies.
Frankly, this space now looks more like the Wild West, or the old world that existed before securities laws were enacted. This asset class is plagued by fraud and abuse in certain applications. We can do better than that.
I asked the SEC staff who work with our regulatory friends to work on two tracks:
First, how can we work with other financial regulators under the current authorities to provide the best protection to investors in these markets?
Second, what gaps are there that we can fill with the help of Congress?
We have several projects in the SEC that go both ways:
1- Offer and sale of cryptocurrencies
2-Cryptocurrency trading and loan platforms
3- Coins of fixed value
4- Investment instruments that provide exposure to crypto assets or crypto derivatives
5- Custody of crypto assets
With regard to investor protection, we work with our sister agency, the CFTC, as each of our two agencies has a relevant and, in some cases, overlapping jurisdiction in the crypto markets. In a broader set of policy frameworks, we are working not only with the CFTC, but also with the Federal Reserve, the Treasury Department, the Office of Monetary Regulation, and other members of the President’s Financial Markets Task Force.
I also suggested that platforms and projects come and talk to us. Many platforms have tens or hundreds of coins. While the legal status of each token will depend on its own facts and circumstances, it is highly unlikely that any platform with 50, 100, or 1,000 tokens will have zero values.
Make no mistake: to the extent that there are securities on these trading platforms, they must be registered with the Commission unless they qualify for an exemption under our law.
I am technologically neutral. I believe that this technology is and can continue to be a catalyst for change, but the technologies will not last long if they are left outside the regulatory framework. I believe that the SEC, working with the CFTC and others, can provide stronger oversight and investor protection in the cryptocurrency space. “