The US Securities and Exchange Commission (SEC) head has asked Congress to grant the organization additional power to regulate digital currencies, trading, and networks, which he describes as a “wild west” plagued with fraud and investors risk.
On Tuesday, Gary Gensler stated that the crypto market had numerous assets that might be unlicensed commodities, leaving prices subject to fraud and millions of traders in danger.
“This asset class is rife with fraud, scams and abuse in certain applications,”. “We need additional congressional authorities to prevent transactions, products and platforms from falling between regulatory cracks.“ Gensler said at a worldwide conference.
In April, the cryptocurrency reached a new high of $2 trillion in market value as more investors added digital tokens to their portfolios, but regulatory control of the sector remains spotty.
The market has been waiting with bated breath to see how Gensler, a Democratic appointment who came over the SEC in April, will handle market supervision, which he stated earlier should be placed under the standard monetary policy.
Gensler, on Tuesday, elaborated on his position, stating that he believes Congress should grant the SEC authority to regulate bitcoin exchanges.
He also urged lawmakers to grant the Securities and Exchange Commission (SEC) additional authority over crypto trading and platforms such as peer-to-peer decentralised finance (DeFi) sites, which enable lenders and borrowers to trade in cryptocurrencies without using traditional banks.
“If we don’t address these issues, I worry a lot of people will be hurt,” he stated.
Senator Elizabeth Warren, a Democrat, has been pressuring authorities to gain a handle on the market, which she described as “highly opaque and volatile” in a July letter to Gensler.
Gensler reacted by requesting that Congress consider giving him additional authority over the sector’s regulation.
He also stated on Tuesday that “stock tokens, a stable value token backed by securities, or any other virtual product that provides synthetic exposure to underlying securities… are subject to securities laws.”