- SEC Chairman Gary Gensler will appear before Congress to comment on bitcoin regulation
- Gensler is expected to highlight the need for protection and ask lawmakers to help
SEC Chair Gary Gensler to Testify on Bitcoin and Crypto Assets
Today, the Securities and Exchange Commission Chairman Gary Gensler will address the looming need for regulations over the fast-developing cryptocurrency space. He shall do this in a hearing before the Senate Banking Committee.
Lawmakers in Washington have been increasingly frustrated over the lack of investor protection in crypto markets. On that note, today’s testimony by Mr. Gensler will aim to provide clarity over the SEC’s plans to regulate trading and investing in digital assets.
In his speech, the SEC chief will discuss topics including bitcoin and stablecoins, digital tokens pegged to the value of fiat currencies like the US dollar.
“We just don’t have enough investor protection in crypto finance, issuance, trading, or lending,” Gary Gensler is expected to say, according to his 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. This asset class is rife with fraud, scams, and abuse in certain applications.”
Mr. Gensler Will Ask for More Authority
Moreover, he is expected to ask for more authority over the crypto space as the SEC could do more if Congress expanded its reach over the largely unregulated market. The SEC head is also going to ask lawmakers to help oversee trading with digital assets on crypto platforms.
“I believe it’s appropriate to look at ways to freshen up the SEC’s rules to ensure that our equity markets reflect our mission and are as efficient and competitive as they could be,” Mr. Gensler will say to lawmakers today. “New financial technologies continue to change the face of finance for investors and businesses. More retail investors than ever are accessing our markets.”
Gary Gensler has been calling for regulations over crypto even before he took charge of the Securities and Exchange Commission. Recently, he praised bitcoin by calling it “a catalyst for change”. He also thinks the current rise of bitcoin and digital assets could be “every bit as big as the internet in the 1990s.”
The live event today entitled “Oversight of the U.S. Securities and Exchange Commission”. It will be hosted by the Committee on Banking could be watched here.