SEC Chairman Gensler Discusses Crypto Regulation After FTX Collapse – Says Field Is ‘Significantly Inappropriate’ – Bitcoin News

US Securities and Exchange Commission (SEC) Chairman Gary Gensler outlined two ways the agency is taking to regulate the crypto industry. Meanwhile, a US congressman is investigating whether Gensler helped FTX CEO Sam Bankman-Fried and his bankrupt cryptocurrency exchange gain a regulatory monopoly over legal loopholes.

SEC Chairman Gensler on the liquidation of FTX

US Securities and Exchange Commission (SEC) Chairman Gary Gensler spoke about cryptocurrency regulation and the deregulation of cryptocurrency exchange FTX in an interview with CNBC on Thursday.

Without confirming whether the SEC is investigating FTX, the chairman explained that investors are harmed when cryptocurrency exchanges “mix a bunch of customer money” and “borrow against it” without disclosure.

They also asked about the watchdog following Kim Kardashian around, which is a relatively minor incident than FTX. Gensler replied:

Look, I think investors need better protection in this area. But I would say it’s a significantly non-compliant area, but it does have regulation, and those rules are often very clear, and we have a lot of ways to go.

“One way is to work with those crypto exchanges, crypto lending platforms and register them properly, and why that’s important is to protect the public,” he explained.

Another way, Gensler emphasized, is enforcement. “My predecessor and I now had at least 100 actions between teams in the SEC … and we were very clear in those various enforcement actions.” He also cited the regulator’s recent victory against LBRY.

‘Come talk to us’

Gensler has often said that cryptocurrency trading and lending platforms should “come in, talk to us and sign up.”

According to his calendar, FTX CEO Sam Bankman-Fried came and spoke with him on March 29. they asked him.

The Chairman of the CEC replied:

I think we’ve been clear in these meetings… inconsistency won’t work, the public will suffer, and we’ll continue down these two paths.

He added that if necessary, the SEC would be the “policeman who goes to court, puts the facts and the law before the judges.”

“It’s about platforms or intermediaries. It’s not like the New York Stock Exchange or the Nasdaq,” Gensler emphasized, adding that a handful of cryptocurrency and trading platforms are “coming.” He opined:

It’s another toxic combination where they take people’s money, borrow money in exchange for it, it’s not very public, and then they trade against their customers.

The chairman added that the SEC is paying attention to these platforms, but “Building evidence, building facts takes a lot of time.”

Congressman investigates whether Gensler helped FTX with legal loopholes

After Gensler’s interview, Congressman Tom Emmer tweeted that his office had received information that the SEC chairman helped Bankman-Fried and FTX work through legal loopholes to gain a regulatory monopoly. “We are investigating this,” the deputy wrote.

SEC Chairman Gensler Discusses Cryptocurrency Regulation After FTX Collapse - This

Last week, four congressmen accused Gensler of “hypocritically mismanaging the SEC,” pointing out that he refuses to practice what he preaches. This week, two lawmakers said they were “deeply concerned” that the SEC was adopting rules too quickly without sufficient input. Gensler has also been criticized for taking an application-centric approach to regulating the cryptocurrency industry.

What do you think of comments from SEC Chairman Gary Gensler and Congressman Tom Emmer? Let us know in the comment section below.

Kevin Helms

Kevin, an Austrian Economics student, discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons, lev radin

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