SEC Chairman Doubles Up And Tells Crypto Firms ‘Come In And Talk To Us’

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Gary Gensler, chairman of the United States Securities and Exchange Commission, once again urges crypto projects with securities to register with the regulator to ensure investor protection.

In a statement prepared for his testimony before the Senate Committee on Banking, Housing, and Urban Affairs scheduled for Sept. 14, Gensler said the Securities and Exchange Commission, or SEC, was working with the Commodities Futures Trading Commission to protect investors in the crypto markets. . In addition, he hopes to develop a policy framework by working with the Federal Reserve, the Treasury Department, the Office of the Comptroller of the Currency and President Joe Bidens’ Task Force on Financial Markets.

I suggested that [crypto] platforms and projects come to talk to us, said the SEC chairman. Many platforms contain tens or hundreds of tokens. Although the legal status of each token depends on its own facts and circumstances, the probability is quite low that with 50, 100 or 1000 tokens a given platform has no title.

Gensler added that innovative technology such as crypto can be a catalyst for change in the financial sector, but not if it continues to stay outside the framework put in place by lawmakers, which many crypto companies in the States United argued is due to a lack of regulatory clarity. .

To the extent that there are securities on these trading platforms, under our laws they must register with the Commission, unless they qualify for an exemption.

Cointelegraph reported in August that Gensler hoped to introduce crypto-related policy changes regarding token offerings, decentralized finance, stablecoins, custody, exchange-traded funds and lending platforms. He has long urged crypto projects to register with the SEC, specifically saying they should come to work with regulators.

We just don’t have enough investor protection in crypto finance, issuance, trading or lending, Gensler said. Frankly, right now it’s more like the Old West or the old world of the suspicious buyer that existed before securities laws were passed. This asset class is rife with frauds, scams and abuse in some applications.

Related: Senator Warren Asks SEC Chairman On Crypto Investor Lack Of Protection

Gensler is scheduled to speak at a full Senate Banking, Housing and Urban Affairs Committee hearing regarding SEC oversight at 10:00 a.m. EST on September 14.

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