The SEC has never been friendly to the crypto markets; neither have they given any clarity on regulations. However, the latest statement by the SEC Chairman Gary Gensler gives some hope for the crypto industry in the US. The SEC Chairman wants to treat crypto like other capital markets while they act as a cop on the beat. Gary also told crypto platforms to come and talk to them. This will ensure that more platforms are complying with regulations, making it safer for crypto investors and users.
SEC Chairman fees crypto should be treated like other capital markets
The Wall Street Journal recently published an article that shared the opinions of SEC Chairman Gary Gensler on crypto. He said just because crypto is a different technology; it doesn’t make sense to treat it separately from other capital markets. Now, if the SEC does follow this approach, then we will have a lot more clarity on the regulations and a clear distinction between securities and crypto tokens/coins.
In fact, Gary Gensler also talked about this in and said it is necessary for firms to follow the securities law. Seeing the current state of the market (crypto lending firms and bankruptcy), it is clearly evident why there is a need for that. He clarified that the supreme court already had stated the definitions of securities, and it’s important to determine whether some assets fall under them.
Gary understands that it won’t be easy for exchanges to follow the securities law and will have its associated costs. But it is necessary and the way forward from here on.
What does it mean for the crypto markets in the US?
I would say that it is a positive approach taken by the SEC. Instead of segregating the crypto markets, if they just treat it like any other asset, it will be much better for the industry. If there is no discrimination, we will have clarity and proper regulations. That will, in turn, mean that businesses can operate without any trouble, and we don’t have to wait months at the end, if not years, for the approval of a BTC spot ETF.
What are your thoughts as SEC Chairman wants to treat crypto like other capital markets? And do you think this is a positive step for the industry? Let us know in the comments below. And, if you found our content informative, share it with your friends.
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