The chairman of the US Securities and Exchange Commission, Gary Gensler, is outlining two paths the agency is taking to regulate the crypto industry. A US Congressman is investigating whether Gensler helped give regulatory monopolies to FTX CEO Sam Bankman-Fried and his bankrupt crypto exchange, as well as find and fix some legal loopholes.
The chairman explained that when crypto exchanges “tend together customer funds they take advantage of borrowing against it without disclosure resulting in injury to investors.
Gensler clearly stated that he thinks investors need more protection and convenience in this regard. But I will say this, this is one area that is significantly non-compliant and regulated and the rules are often very clear which is why we have many avenues.
According to Gensler the crypto trading and lending platform should talk to us and take steps towards getting registered.
The SEC chairman said that he thinks we have become clear from the trees that this kind of non-compliance is not going to work and the public will continue to suffer because of this and we will continue to walk on two paths.
Gensler said that a handful of crypto lending and trading platforms are assets that are kind of a toxic combination, they take people’s money, and borrow against it, don’t have much disclosure and trade against their clients. After the interview, Congressman Tom Emmer tweeted that he had received reports that the chairman of the SEC helped Bankman-Fried and FTX work on legal loopholes to obtain regulatory monopolies.
