SEC Chair Tells Senator Legislative Priority Should Center on Crypto Trading, Lending, Defi Platforms

consultation businessman male lawyer judge counselor having team meeting 1 scaled

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has written a letter to Senator Elizabeth Warren about crypto regulation. After outlining his concerns and priorities in the crypto sector, he said, “additional authorities” and “more resources to protect investors in this growing and volatile sector” are needed.

SEC Chair Tells Senator Legislative Priority Should Center on Crypto Trading, Lending, Defi Platforms

SEC Chair Gensler Replies to Senator Warren About Crypto Regulation

On Wednesday, U.S. Senator Elizabeth Warren released the letter she received from the chairman of the Securities and Exchange Commission (SEC), Gary Gensler, in response to her July 7 letter about cryptocurrency regulation.

Gensler’s letter, which mirrors his speech at the Aspen Security Forum last week, outlines numerous areas in crypto the chairman is concerned about. It is dated Aug. 5 even though Senator Warren demanded that he reply to her by July 28.

The former crypto professor at the Massachusetts Institute of Technology (MIT) explained that there are both centralized and decentralized finance (defi) platforms, adding that some of them implicate securities laws, commodities laws, and also banking laws. “This raises a number of issues related to protecting investors and consumers, guarding against illicit activity, and ensuring financial stability,” he opined. “Right now, I believe investors using these platforms are not adequately protected.”

Noting that a typical crypto trading platform supports more than 50 tokens and many have well over 100 tokens, Gensler emphasized:

While each token’s legal status depends on its own facts and circumstances, the probability is quite remote that, with 50 or 100 tokens, any given platform has zero securities.

“I believe we have a crypto market now where many tokens may be unregistered securities, without required disclosures or market oversight,” he stressed.

The chairman also mentioned that some unregulated overseas platforms allow U.S. investors to trade cryptocurrencies using private virtual networks (VPNs).

The SEC chief proceeded to outline his concerns regarding stablecoins, stating:

The use of stablecoins on these platforms may facilitate those seeking to sidestep a host of public policy goals connected to our traditional banking and financial system: anti-money laundering, tax compliance, sanctions, and the like.

“I believe we need additional authorities to prevent transactions, products, and platforms from falling between regulatory cracks. We also need more resources to protect investors in this growing and volatile sector,” he described, reiterating what he said at the Aspen Security Forum:

In my view, the legislative priority should center on crypto trading, lending, and Defi platforms.

“We stand ready to work closely with Congress, the Administration, our fellow regulators, and our partners around the world to close some of these gaps,” Gensler concluded.

What do you think about Gensler’s comments to Senator Elizabeth Warren? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 68,589.38
ethereum
Ethereum (ETH) $ 3,781.71
tether
Tether (USDT) $ 0.999832
bnb
BNB (BNB) $ 597.27
solana
Solana (SOL) $ 168.92
staked-ether
Lido Staked Ether (STETH) $ 3,781.04
usd-coin
USDC (USDC) $ 1.00
xrp
XRP (XRP) $ 0.524950
dogecoin
Dogecoin (DOGE) $ 0.163097
cardano
Cardano (ADA) $ 0.450788
the-open-network
Toncoin (TON) $ 6.51
shiba-inu
Shiba Inu (SHIB) $ 0.000027
avalanche-2
Avalanche (AVAX) $ 36.85
chainlink
Chainlink (LINK) $ 18.39
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,526.36
tron
TRON (TRX) $ 0.111869
polkadot
Polkadot (DOT) $ 7.08
bitcoin-cash
Bitcoin Cash (BCH) $ 469.37
uniswap
Uniswap (UNI) $ 10.94
near
NEAR Protocol (NEAR) $ 7.44
matic-network
Polygon (MATIC) $ 0.705561
litecoin
Litecoin (LTC) $ 85.40
pepe
Pepe (PEPE) $ 0.000014
internet-computer
Internet Computer (ICP) $ 12.25
fetch-ai
Fetch.ai (FET) $ 2.25
leo-token
LEO Token (LEO) $ 5.97
dai
Dai (DAI) $ 1.00
wrapped-eeth
Wrapped eETH (WEETH) $ 3,930.97
ethereum-classic
Ethereum Classic (ETC) $ 30.22
aptos
Aptos (APT) $ 9.35
render-token
Render (RNDR) $ 10.21
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,730.84
hedera-hashgraph
Hedera (HBAR) $ 0.102120
dogwifcoin
dogwifhat (WIF) $ 3.47
cosmos
Cosmos Hub (ATOM) $ 8.61
arbitrum
Arbitrum (ARB) $ 1.15
kaspa
Kaspa (KAS) $ 0.139356
mantle
Mantle (MNT) $ 1.01
immutable-x
Immutable (IMX) $ 2.22
filecoin
Filecoin (FIL) $ 5.87
crypto-com-chain
Cronos (CRO) $ 0.117469
stellar
Stellar (XLM) $ 0.106732
ethena-usde
Ethena USDe (USDE) $ 1.00
the-graph
The Graph (GRT) $ 0.310452
first-digital-usd
First Digital USD (FDUSD) $ 0.999987
blockstack
Stacks (STX) $ 1.98
arweave
Arweave (AR) $ 43.49
bittensor
Bittensor (TAO) $ 407.17
okb
OKB (OKB) $ 45.76
optimism
Optimism (OP) $ 2.50