U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler says that the agency is coordinating with digital asset exchanges in order to protect the interest of the public.
“The agency is really just looking out for investors and many of these tokens, not trying to pre-judge any one, but many of these tokens have the attributes of securities.
They’re raising money from the public and the public is anticipating profits based upon the efforts of others, so we’ve brought a number of actions. We’re trying to work with the various crypto platforms, the exchanges, the lending platforms to come in, get registered, find where we can adjust our ruleset to get the investor protection for the public.”
Gensler says that crypto platforms are all likely providing access to unregistered securities and in need of regulatory updates. According to the Chairman, firms in the industry should take the initiative to establish communication with the SEC to ensure regulatory compliance.
“If you’re a platform and you have 75 or 100, or sometimes 5,000 tokens on that platform, probabilities are that a number of them and maybe many of them are what’s called a security…
It comes down to this: are you raising money from the public and the public’s anticipating profits based on the efforts of others? My predecessor Jay Clayton, the agency that I’m honored to chair at this point in time, is going to try to pursue investor protection and if that means bringing greater enforcement actions, we’ll do that, but it would be better to have these platforms come in work with us and come under the securities laws.”
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