Even though the US government is open to crypto, there still aren’t very clear laws regarding the same. This is why the US Securities and Exchange Commission (SEC) has urged Congress to pass proper crypto laws in the country. The new laws will be to protect investor interest and increase transparency in the crypto space and fill in the spaces left behind in old laws. It will also make sure that investors know the risks, rules, taxes, and other things related to crypto beforehand.
The steps taken by SEC
Recently a new US SEC chairman has been appointed. Gary Gensler (chairman) has been trying to push new regulatory laws as quickly as possible. He suggests that the current laws had many loopholes and gaps that need to fill in by the government. Most of the laws that exist only take Bitcoin and Ethereum into account but there are thousands of other cryptocurrencies that are being traded on different exchanges. And according to Gary, these currencies are operating as unregistered securities.
One good thing that the SEC chairman mentioned was regulating exchanges to protect investors. Like in the stock markets the exchanges are registered and are monitored to prevent any kind of illicit activities. In the case of crypto, the same would be done. He also said that there is obviously a lot of market manipulation going on. And there is also no doubt that unless proper laws are implemented these things won’t stop.
As I said the main idea here is to regulate crypto exchanges like stock exchanges. Because even though those markets are not completely free, they do protect investors in some ways. And help minimize losses if things go wrong.
Hopes are thin
According to Gary even though he is trying hard to get these new laws passed, the hopes are thin. Crypto markets have grown pretty fast and most authorities still lack a clear image of the same. And this makes them stall the entire process. Gary said he doesn’t expect Congress to pass the laws anytime soon. And neither do I. Unless very clear laws are announced by the government that need not be changed every two days, the markets will continue to suffer.
What are your thoughts on Gary Gensler asking Congress to release new crypto laws? And do you think we can expect them anytime soon? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.