Gary Gensler, chairman of the US Securities and Exchange Commission (SEC) stated that the regulatory body is working with Congress to devise a more efficient means of regulating crypto exchanges.
Gensler said better regulation is important to protect investors’ interest in the market.
Looking for quick news, tips, and market analysis? Sign up for the Invezz newsletter today.
Answering questions about a new regulation for digital assets, he responded that it is challenging to create sufficient consumer protections due to the size of the industry.
Gensler admitted that his agency has been able to take 75 shares despite the thousands of crypto assets available in the industry. Additionally, he opined that crypto exchanges appear to be the best place to implement consumer protections.
The SEC has lacked resources
He also noted that the industry is not receiving the level of attention it needs, adding that the authority spends only $ 325 million a year on technology. However, some industry players spend twice as much in a month.
Gensler noted that the SEC is working closely with the US Congress and other regulators to provide more protection to investors in the crypto markets.
The newly elected chairman stated that the SEC should provide the same level of protection for crypto exchanges that an investor gets on Nasdaq or NYSE.
An improved regulation of cryptocurrency exchange
He also mentioned some of the issues facing the industry when it comes to regulation. In addition to lacking financial resources, Gensler wants more effective reforms within the sector that improve investor protection.
His suggestions are consistent with the announcement made by Michael Hsu, the new director of the Comptroller of the Currency. Hsu stated that the agency has engaged both the Federal Deposit Insurance Corporation and the United States Federal Reserve to establish an “interagency policy sprint team” that will only focus on the cryptocurrency industry.
67% of retail CFD accounts lose money