The chairman of the US Securities and Exchange Commission spoke at a meeting of the Senate Banking Committee and promised to develop a set of rules for regulating and controlling the crypto market.
SEC chief Gary Gensler assured the senators that the commission is working to develop a set of rules to regulate volatile cryptocurrency markets in order to protect US investors and take into account the interests of crypto companies.
“Currently, we just don’t have enough investor protection in crypto finance, issuance, trading, or lending,” Gensler said in prepared remarks. “Frankly, at this time, it’s more like the Wild West or the old world of ‘buyer beware’ that existed before the securities laws were enacted.”
Gensler noted that the regulator has a large-scale task to evaluate about 6,000 digital assets, and therefore the supervisor may need to involve more employees in this process. The SEC is studying digital coins to understand which ones should qualify as securities under US laws.
Some senators urged Gensler to speed up work on crypto regulation, noting that vague definitions hinder the development of a new industry and condone speculations.
Republican senators traditionally expressed concern that the SEC’s actions could have a deterrent effect on the development of innovation, and Democratic senators once again emphasized the speculative risks associated with investments in cryptocurrencies.