- SEC chairman Gary Gensler lays out crypto market agenda in senate testimony
- He calls the crypto market a “Wild West”
- Gensler also clarified that, despite his criticism, he was not pessimistic about cryptocurrencies.
The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has once again urged crypto companies offering securities to register with the regulator to ensure assets of investors are protected.
In a speech prepared for his testimony before the Senate Committee on Banking, Housing, and Urban Affairs scheduled for September 14, Gensler said that the SEC was working with the Commodities Futures Trading Commission for protecting investors in the crypto markets.
Gensler also said that the agency is working with the Federal Reserve, the U.S. Commodity and Futures Trading Commission, the Treasury Department, the Office of the Comptroller of the Currency, and other members of the President’s Working Group on Financial Markets. All of these groups have discussed issues regarding cryptocurrency regulations.
Not only has Gensler highlighted fresh concerns and called the crypto industry a “Wild West”, but he has also used each available opportunity to move his case for bringing the crypto industry under his commission’s oversight.
He has called crypto platforms and projects to talk to the SEC and says that there could several tokens that may likely qualify as securities.
What has the SEC Prioritized?
Gensler explained to the Senators that Chinese companies carrying out business in certain sectors, such as the internet and technology, are restricted from selling their ownership stake to foreigners in the United States. However, as a workaround, they utilize structures called variable interest entities to raise capital on the U.S. exchanges through shell companies in the Cayman Islands and other jurisdictions.
On other issues, the chairman said the Commission is working to make sure the increased risks of firms operating in China are clearly and prominently disclosed to investors.
Further speaking on the special purpose acquisition companies (SPACs), Gensler said that he has asked his staff for recommendations about improving disclosures in these investments. He added that there are huge fees and potential conflicts inherent within SPAC structures, and investors should be given clear information so that they can better understand the costs and risks.
However, despite his merciless criticism of the crypto industry, Gensler has clarified that he was not negative about cryptocurrencies.