US Securities and Exchange Commission (SEC) Chairman Gary Gensler has said crypto investors are not adequately protected.
Testifying Tuesday before the US Senate Committee on Banking, Housing and Urban Affairs, Gensler said crypto investors are vulnerable to fraud and other illegal activities due to lack of “adequate investor protection” in the space.
He went on to say “Currently, we do not have sufficient investor protection in the areas of crypto finance, issuance, trading or lending. Honestly right now it looks like the Wild West or the old world of “buyers beware” that existed when the headlines were issued before the securities law was passed.
While arguing that some tokens are headlines must be registered as such, Gensler said that the SEC welcomes dialogue with crypto projects and platforms
This asset class is rife with fraud, scams, and abuse in certain applications. We can do better.”
The SEC chairman says that a significant percentage of players in the cryptocurrency space are disregarding the existing regulations.
“Right now, large parts of the field of crypto are sitting astride of – not operating within – regulatory frameworks that protect investors and consumers, guard against illicit activity, and ensure for financial stability.”
This comes as a bit of a surprise to some crypto investors as the SEC has been making headlines lately towards beloved crypto XRP and the well known crypto exchange Coinbase which have been under scrutiny by the SEC.
Whatever your stance is on crypto currency it seems like the Wild West era of crypto is soon to be taken Over into the regulation era by the federal government in the years to come.
Let’s just hope it’s more of a friendly chat with turkey and stuffing then the exchanging of small pox blankets that could wipe all the potential crypto markets into Extinction.