Among his longstanding fight to get proper regulations set out for Bitcoin (BTC) +4.5491%, Ethereum (ETH) +4.8212% and the likes, Gary Gensler has received an immense amount of backlash. Now Gensler warned all crypto investors, to justify the efforts: If there are no clear rules investors are “likely to get hurt” (Business Insider, 2021).
The chairman of the Securities and Exchange Commission (SEC) plans on coming up with proper protection against fraud and manipulation for the digital asset space. The same type of regulations that other banking instruments have to adhere to.
During the Financial Times’ Future of Asset Management North America conference, Gensler told the crowd: “This crypto space is now certainly of a size that without those investor protections of banking, insurance [and] securities laws [and] market oversight, I do think somebody is going to get hurt,” (Business Insider, 2021).
Crypto platforms, asking users to invest money for returns will be regulated under securities laws, according to Gensler’s plans. The SEC chairman recommends any of these platforms not yet regulated, as they should be, should do so as soon as possible.
Gensler suggests for the crypto platforms to “[…] consider the securities laws carefully and talk to the agency about getting registered.” (Business Insider, 2021).
His comments might be slyly referring to the ongoing dispute with Coinbase (COIN) +0.56%, after the crypto exchange had to announce they were scraping plans for their crypto lending program Lend. The feature would’ve allowed customers to earn 4% interest on their crypto holdings.
The program falls directly into the description of platforms, Gary Gensler plans to hit with stricter rules. Since Gensler took over from Jay Clayton as chairman of the SEC, he has made it his mission to build the digital asset space up with rules and regulations to protect the consumer.
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*Stock percentages taken on 01.10.2021 at 09:51.
*Lee, Isabelle (30. September). Business Insider: SEC’s Gary Gensler warns a lot of people are ‘likely to get hurt’ without crypto rules like those for bank deposits, insurance. Last viewed on 01.10.2021 on https://markets.businessinsider.com/news/currencies/gary-gensler-sec-chair-cryptocurrency-rules-regulation-people-hurt-2021-9.
