{"id":13404,"date":"2022-07-29T17:24:58","date_gmt":"2022-07-29T17:24:58","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-chair-gensler-says-crypto-exchanges-must-register\/"},"modified":"2022-07-29T17:24:58","modified_gmt":"2022-07-29T17:24:58","slug":"sec-chair-gensler-says-crypto-exchanges-must-register","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-chair-gensler-says-crypto-exchanges-must-register\/","title":{"rendered":"SEC Chair Gensler says crypto exchanges must register"},"content":{"rendered":"

(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum & Crypto News )<\/b>
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US Securities and Exchange Commission (SEC) Chair Gary Gensler has severally pointed out that cryptocurrency exchanges and trading platforms cannot be treated differently from traditional stock exchanges.<\/p>\n

And amid the increased regulatory spotlight on crypto, helped by recent events, the SEC boss has renewed that call.<\/p>\n

In a video he\u00a0shared<\/u><\/a> on Twitter, Gensler says crypto platforms will better protect customers \u2013 and see further growth as a result \u2013 if they embrace regulatory compliance.<\/p>\n

According to Gensler, digital asset platforms (like regulated stock markets) can help protect millions of users against aspects such as \u201cmanipulation, fraud and front running,\u201d if they are registered and properly regulated.<\/p>\n

\u201cWith so many retail customers trading on crypto platforms, we should make sure that those platforms offer similar protections<\/em>,\u201d he noted, adding that SEC staff have been mandated to pursue registration of these crypto platforms. The key, he explained, is to ensure the exchanges are regulated as securities platforms where appropriate.<\/p>\n

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We have rules in our capital markets to safeguard market integrity & protect against fraud & manipulation. If a company builds a crypto market that protects investors & meets the standard of our market regulations, people will more likely have greater confidence in that market. pic.twitter.com\/ZxdBfvmqXP<\/a><\/p>\n

\u2014 Gary Gensler (@GaryGensler) July 28, 2022<\/a><\/p>\n<\/blockquote>\n

Conflict of interest?<\/h2>\n

Gensler also pointed out that with crypto exchanges also acting as market makers, potential conflict of interest could harm investors. As such, he has asked staff at the securities watchdog to find what\u2019s possible with regard to \u201csegregating out\u201d the market making functionality from the digital asset platforms.<\/p>\n

If the traditional exchanges don\u2019t do this \u2013 market making \u2013 why should crypto platforms be any different?<\/p>\n

\u201cLook, there\u2019s no reason to treat the crypto market differently, just because a different technology is used<\/em>,\u201d he pointed out.\u00a0<\/p>\n

Gensler\u2019s comments come days after he reiterated the need to have crypto exchanges and lending platforms offer more disclosures as part of basic consumer protection. They also come amid reports the SEC is investigating crypto exchange Coinbase over the listing of securities tokens.<\/p>\n

Coinbase refutes these claims and alongside several industry players, say the agency is engaging in \u201cregulation by enforcement<\/em>.\u201d<\/p>\n<\/div>\n