Cryptocurrency platforms need regulation to survive, says head of US securities regulator
SEC boss Gary Gensler said cryptocurrency platforms must work with the watchdog to draw up rules for the industry
The head of the US securities regulator has urged crypto- currency platforms to come in from the cold.
Gary Gensler, chairman of the Securities and Exchange Commission (SEC), has warned platforms trading assets like bitcoin are putting their survival at risk unless they work with the watchdog to draw up rules for the industry.
Gensler, seen as a friend of the crypto industry, believes it should be regulated in order to allay concerns over investor protection, financial stability and the clamping down of illicit activity such as money laundering.
‘Finance is about trust, ultimately’, he told the Financial Times, saying he had been disappointed by a lack of take-up for his suggestion that crypto trading platforms register with SEC.
‘At about £1.5trillion of value worldwide, crypto trading is at the level and the nature that if it’s going to have any relevance five and 10 years from now, it’s going to be within a public policy framework,’ he said. ‘Talk to us, come in,’ he added.
Gensler’s comments carry additional weight as he has taught a course on the subject, and come amid a sharp increase in regulatory scrutiny as a boom in investment has allowed trading platforms to rake in billions.