Gary Gensler, the current Chairman of the SEC, believes the cryptocurrency industry needs to go under the scope of the Commission.
During an interview with Bloomberg, Gensler admitted that he is intrigued by the cryptocurrency space, but that wouldn’t deter him from protecting US investors via enhanced regulations on the market.
Being deeply familiar with the blockchain space, as he taught DLT classes at the Massachusetts Institute of Technology (MIT), Gensler was expected to have a straightforward approach when it comes down to regulating the industry when he took charge at the SEC earlier this year.
So far, though, the Commission is yet to announce any precise rules, although speculations have run rampant in the past several weeks.
Speaking to Bloomberg, Gensler admitted his affection to the market but said he will work towards enhanced investor protection from potential scams and fraudulent activities.
“While I’m neutral on the technology, even intrigued, I spend three years teaching it, leaning into it – I’m not neutral about investor protection. If somebody wants to speculate, that’s their choice, but we have a role as a nation to protect those investors against fraud.”
Although he didn’t specify the precise nature of the potential legislation, the SEC’s Chairman said the crypto market needs to go under the jurisdiction of the Commission.
He noted that Bitcoin falls under the commodity category, but almost all other altcoins are securities and must comply with the SEC’s rules.
Gensler outlined concerns about several cryptocurrency areas, including decentralized finance (DeFi), stablecoins, and exchange-traded funds. Consequently, he promised that he has “asked the staff to use all of our authorities anywhere we can” in relation to those sectors.