SEC Chair-Gary Gensler, stated that the agency’s protections for traditional asset investors should also apply to crypto investors.
iexclusivenews reports that in prepared remarks released Monday for the Penn Law Capital Markets Association Annual Conference.
Gensler stated that he has asked SEC staff to look into registering crypto platforms and subjecting them to the same legal framework as exchanges.
Meanwhile iexclusive News Nigeria reports that the SEC chair stated that the agency’s staff may be considering how to register platforms.
“Where the trading of securities and non-securities is intertwined”
And whether retail crypto investors should be afforded the same protections.
As those in traditional markets in order to address regulatory clarity in the crypto space.
“Crypto may offer new ways for entrepreneurs to raise capital and for investors to trade, but we still need investor and market protection,” said Gensler.
“We already have robust ways to protect investors trading on platforms. And we have robust ways to protect investors when entrepreneurs want to raise money from the public. We ought to apply these same protections in the crypto markets.”
The SEC chair went on to say that his staff will look into whether it would be “proper to segregate out custody.”
Implying that the registration system for platforms that offer custody would be different from those that don’t.
“There’s no reason to treat the crypto market differently just because different technology is used.”
During his time at the SEC, Gensler advised crypto ventures containing securities to register in order to safeguard investors in a “come in and talk to us” manner.
Many crypto companies have lamented the lack of regulatory clarity in the United States.
Which might be interpreted differently by organizations such as the Securities and Exchange Commission.
The Commodity Futures Trading Commission, and the Financial Crimes Enforcement Network.