Blog: SEC Chair Pushes to Regulate Crypto Platforms – Financial Advisor IQ

The Securities and Exchange Commission is going forward with plans to regulate cryptocurrency trading platforms.

In a video released on Thursday on Twitter that dives back to the history of securities regulation, SEC chair Gary Gensler said he’s asked the commission’s “staff to work directly with the platforms to get them registered and regulated.”

Gensler also said that he’s asked staff to consider segregating out the market making functions of crypto platforms, as regular stock exchanges don’t serve that function.

“There’s no reason to treat the crypto market differently just because a different technology is used,” he said. “That would be like saying drivers of electrical cars don’t need seatbelts because they don’t use gas.”

“We should be technology neutral when it comes to investor protection,” Gensler added.

Gensler has long pushed for the SEC to regulate the crypto market. In January, the SEC chair said that “this asset class is rife with fraud, scams and abuse in certain applications” and doesn’t offer enough investor protection.

The commission said in May that it almost doubled the size of the enforcement division overseeing cryptocurrency markets and cybersecurity it set up in 2017.

But last month, reports emerged that two U.S. senators were planning to introduce a new regulatory framework that would treat digital assets as commodities and place them under the jurisdiction of the Commodity Futures Trading Commission and not the SEC.

The CFTC, which allowed Bitcoin futures trading in 2017, is seen as more friendly to digital assets than the SEC.

Do you have a news tip you’d like to share with FA-IQ? Email us at editorial@financialadvisoriq.com.

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