- The SEC Chairman said that he has asked his staff to put crypto trading platforms inside the investor protection permit.
- Investor protection shall be a key area of focus for the SEC in 2022 added Gensler.
The U.S. Securities and Exchange Commission (SEC) is keen on monitoring the functioning of cryptocurrency exchanges in the country. SEC chair Gary Gensler said that cryptocurrencies will be the primary focus for the securities regulator this year.
Gensler said while speaking at a virtual press conference on Wednesday, January 19. He said that Washington’s financial regulators will initiate further steps in regulating crypto trading venues. According to Gary Gensler, this additional scrutiny is essential to offer better investor protection similar to stock trading or other assets. During his virtual press conference, Gensler said:
I’ve asked staff to look at every way to get these platforms inside the investor protection remit. If the trading platforms don’t come into the regulated space, it’d be another year of the public being vulnerable.
Gensler has repeatedly stressed over having better investor rules. Furthermore, he has also argued that most crypto tokens were akin to securities. During a CNBC interview earlier this month, Gensler said:
I won’t comment on any one project. But you raised an important point. Crypto tokens, I will call them, are raising money from the public. And are they sharing with the public the same set of disclosures that helps the public decide and are complying with truth in advertising?
Although Gensler has had a pro-crypto stand in the past, he said that it would not stop him from pushing for regulatory rules in this space.
Crypto.com CEO – Regulators didn’t reach out after hack
Although the crypto market has advanced significantly, some of the top trading platforms still remain vulnerable to hacks. A recent example is that of Crypto.com which lost a staggering $15 million worth of Ethereum in a recent heist.
Crypto.com CEO Kris Marszalek confirmed this cybersecurity breach stating that nearly 400 customer accounts were compromised. Marszalek further added that regulators haven’t yet reached out after the hack, however, they are ready to share any relevant information on demand. He further added that the exchange has reimbursed all customers affected by the hack.
Crypto.com plans to release additional information in the coming days. But this shows that system hacks at the crypto trading platforms have been a persistent problem.
As a result, regulatory bodies are keen on having oversight of their operations. Last year, Gary Gensler said that the United States won’t be among those nations going for a crypto ban. However, it will enhance measures for investor protection. Countries like India have called for a coordinated regulatory effort from developed and emerging economies to swiftly tackle crypto issues.