The Securities and Exchange Commission (SEC) of the United States urges Congress to help it oversee the cryptocurrency exchange industry. In a previous hearing, SEC head Gary Gensler noted that while platforms are becoming more significant, they are governed by very few regulations.
Gary Gensler, who was previously inaugurated in as the SEC head, has been advocating for supervision of digital currencies. He restated this idea during a previous hearing before the House of Representatives’ Financial Services and General Government subcommittee.
“I think that there are gaps in our current system,” he talked to the subcommittee. The Securities and Exchange Commission (SEC) has kept making strenuous attempts to regulate the nascent digital currency sector. Nevertheless, “there are thousands of tokens and we’ve only been able to bring 75 actions against digital currency offenders. There are many others that are non-compliant.”
Nevertheless, he believes that additional controls are most needed on the exchanges.
“I think the bigger gap is around exchanges, and I would think we could work with Congress to try and bring investor protection to the platforms where these ‘sometimes commodities, sometimes currencies’ are trading from.”
To secure investors, Gensler thinks that rules of the road should be established. He cited established markets like the New York Stock Exchange and Nasdaq as examples of well-run marketplaces that safeguard investors against illicit operations.
Previous CFTC Chair Gensler stated he had been collaborating with his former department to figure out “who does what” in the ecosystem.
Underfunding is one of the SEC’s challenges, according to Gensler. That is likely less than what some huge corporations spend in a month, or even two weeks says the department, which uses just 16 percent of its $325 million allocation on technology each year. As a result, the agency is at a handicap and can’t keep up with some market competitors.
Digital assets had already been lauded by Gensler, who described them as “new thinking in payments”. He has, nevertheless, long warned that authorities must develop in order to stay up with the industry.