The United States Securities and Exchange Commission is trying to cooperate with Congress and different regulators to enhance its oversight of cryptocurrency exchanges.
Gary Gensler, the newly appointed chairman of the SEC, mentioned that the fee is trying ahead to working with fellow regulators and Congress to fill gaps in investor safety in crypto markets.
The official announced the plans at a Wednesday listening to earlier than the Financial Services and General Government subcommittee of the House of Representatives.
Gensler said that the SEC wants to present comparable protections for crypto exchanges that an investor would get on the New York Stock Exchange or Nasdaq:
“If you positioned an order on an app, and also you mentioned, ‘Alright, I need to purchase a inventory,’ there are guidelines that defend you that someone gained’t use your order and get forward of you. […] So, it’s attempting to carry the same protections to the exchanges the place you commerce crypto belongings as you would possibly anticipate on the New York Stock Exchange or Nasdaq.”
The new SEC head additionally outlined a few of the challenges to regulating the cryptocurrency business, stating that the SEC is “under-resourced” in monetary phrases when put next with a few of the massive gamers within the business. “We solely spend about 16% or 17% of our price range, about $325 million a 12 months, on know-how, which is lower than most likely some massive corporations spend in a month. Some of them even spend that a lot in two weeks,” he famous.
Gensler beforehand suggested that the SEC needs to be cooperating with Congress to correctly handle crypto change regulation in a market volatility-related listening to of the House Financial Services Committee in early May.
Last week, Michael Hsu, the brand new head of the Office of the Comptroller of the Currency, introduced that the company has been in talks with the U.S. Federal Reserve and the Federal Deposit Insurance Corporation about establishing an “interagency coverage dash workforce” targeted solely on crypto.
