Gary Gensler: The SEC Seeks to Regulate Crypto

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Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), has stated in a Senate Banking Committee hearing that the majority of cryptocurrencies are regarded as securities and fall under the SEC’s jurisdiction.

As such, brokers, dealers, and clearing agencies operating within the crypto market must register with the Commission.

He has further warned of the consequences of lack of compliance with securities laws, drawing references to events in the 1920s prior to enactment of appropriate federal legislation.

To reduce these occurrences, the SEC has enforced several settlements and litigations against violators and are now dedicated to creating investor protection.

The department has developed suggestions for crypto trading platforms, DeFi systems, and formulated qualifications for qualified custodians of digital assets.