On Tuesday, at a meeting of the Senate Banking Committee, the head of the SEC said that crypto exchanges are selling what the SEC considers securities, and the Commission intends to fight this.
Gary Gensler noted that many crypto exchanges have hundreds of tokens that are securities and must be registered with the Commission. In his opinion, there are a small number of cryptocurrencies that can actually be traded in commodities.
During his speech, Gensler also spoke about investor protection, saying that an asset class like cryptocurrency is rife with fraud and abuse. In his opinion, at present, the SEC simply does not have enough investor protection in crypto finance, issuance, trading or lending.
Senator Elizabeth Warren said the cryptocurrency market crash last week and the resulting interruptions in the exchanges are clear evidence of the need for regulation of the industry by the Securities and Exchange Commission.
The senator also gave an example in the form of a hypothetical investor who invested his savings just before the market crash, and when he wanted to take his savings, found that crypto exchanges were not available.
According to lawyer Jeremy Hogan, the regulator is very serious and will no longer issue warnings.
It is worth recalling that in May, Gensler called on Congress to clarify the crypto industry's regulatory framework. In August, he warned of increased regulation of stablecoins and DeFi. In September, Coinbase top management disclosed information about a disagreement with the SEC regarding the announced crypto-savings accounts based on the USDC stablecoin.
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