The U.S. Securities and Exchange Commission (SEC) Chairman has called upon Congress for additional legislative authority in order to protect cryptoasset investors.
Speaking at the Aspen Security Forum, SEC Chair Gary Gensler outlined his views on digital assets and the crypto industry, saying that investors needed more protection.
Gensler, who taught a course on blockchain for several years at MIT, said he was “netural” on the technology but adamant about investor protection.
As reported by Bloomberg, Gensler said,
While I’m neutral on the technology, even intrigued – I spent 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.
The report claims Gensler has asked Congress to pass a law giving the regulatory body legal authority to monitor cryptoasset exchanges. Gensler said he believes most altcoins fall under the category of “unregistered securities” and therefore must comply with SEC regulations.
Gensler lauded the impact of technology on economic progress, but noted the government’s role in providing safe and fair limits.
It’s only with bringing things inside—and sort of clearly within our public policy goals—that a technology has a chance of broader adoption.
Gensler did not give a timeline for the SEC to take action on cryptoassets, but instead left the door open for a possible pathway for Bitcoin exchange-traded funds (ETFs) to finally gain approval.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.