SEC Chairman calls for better protection for cryptocurrency investors
The recently-appointed SEC Chair, Gary Gensler, considered the cryptocurrency industry and the people involved around it needs more advanced protection. Gensler also referred to bitcoin as a speculative store of value and called for an update of the existing regulations in the US.
The crypto boom that started in late 2020 has caught the attention of watchdogs. Regulators are dabbling with if, how, and what kind of rules they need to implement to enhance the security.
The new Chairman of the Securities and Exchange Commission(SEC) commented on the crypto topic during an interview with CNBC’s Squawk Box. The Chair noted the need of providing more protection to cryptocurrency investors due to the market’s volatility and being this popular in less period of time.
“And there are investors that want to trade that, and trade that for its volatility, in some cases just because it is lower correlation with other markets. I think that we need greater investor protection there,” he stated. Gensler also spoke on the primary cryptocurrency and called bitcoin a “speculative, digital, scare store of value.”
Before being named the new SEC Chair, Gensler taught students at the MIT Sloan School of Management about blockchain technology, digital currencies, and public policy, and apparently that makes his views notable.
He suggested the Commission to stay “technology-neutral” towards innovations and new implementations in markets. As far as coins that could be counted as securities, Gensler said:
“To the extent that something is a security, the SEC has a lot of authority. And a lot of crypto tokens – I won’t call them cryptocurrencies for this moment – are indeed securities.”