SEC chief Gary Gensler says crypto will become mainstream only if clear rules are in place as he plans tighter regulation
- SEC Chair
Gary Genslersaid cryptowould take off only if there were clear rules around the market.
- He said investors needed more protection from fraud and suggested he wanted to focus on exchanges.
- He said the SEC was looking at at least seven crypto areas, including
DeFi, stablecoins, and ETFs.
Gary Gensler, the new Securities and Exchange Commission chief, said crypto could become mainstream only if regulators laid out clear rules - and he's setting his sights on stricter regulation for the $1.6 trillion digital-asset market.
In a wide-ranging interview with Bloomberg published on Tuesday, Gensler said he believed investors needed more protection against fraud. He also said the SEC was looking at at least seven areas of the market, including decentralized finance, or DeFi, and stablecoins. And he again suggested he wanted to focus on
Gensler, who taught a cryptocurrency course at MIT, said he was neutral or even intrigued by the technology but was not neutral about investor protection. "We have a role as a nation to protect those investors against fraud," he said.
Gensler said he believed digital assets could boost economic progress and become more widely used.
But he said that "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 said it was a bit like driving, which took off only when the government laid out clear rules of the road.
The former Goldman Sachs partner said the SEC was doing lots of work on digital assets and looking at at least seven key issues: initial coin offerings, trading venues, lending platforms, DeFi, stablecoins, custody, and exchange-traded funds.
Gensler told Bloomberg that regulating crypto exchanges could be the best way to gain more control over cryptocurrencies. In May, he urged Congress to work on legislation to give the SEC more oversight of trading venues.
A key issue when it comes to
But Gensler said DeFi lending could come under SEC oversight as it often offers a specific interest-rate return. He also said platforms that pool digital assets could be akin to mutual funds, meaning the SEC could regulate them.
However, Gensler did not lay out when the SEC would take further action on crypto, saying that other big issues such as the GameStop saga were occupying the market watchdog. He also declined to say whether the SEC would approve a
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