Securities and Exchange Commission Chairman Gary Gensler has likened the crypto space to the Wild West saying there are not enough protocols for investor protection, according to a prepared statement.
- Gensler said a large part of the crypto space is on the fence on regarding regulatory frameworks that are designed to protect the welfare of investors and consumers, and ensure financial stability while preventing illicit activity.
- Gensler believes it is currently “more like the Wild West or the old world of ‘buyer beware” which was in place before laws were enacted on securities, adding that it is “rife with fraud, scams, and abuse” in select applications.
- The SEC is now working with on policy frameworks that will guide the crypto economy, in partnership with the Commodity Futures Trading Commission, the Federal Reserve, Department of Treasury, Officer of the Comptroller of the Currency, and members of the President’s Working Group on Financial Markets.
- The SEC Chairman has also suggested dialogs with platforms and projects, saying that securities are available on their systems and thus should be registered with the Commission.
Gensler said he is “technology-neutral,” but warned technologies do not last long if unregulated. His remarks were made before the US Senate. BTC is up 6.01%, ETH up 5.38%, and ADA up 0.36%.