SEC Chairman Gary Gensler: Securities laws do not need separate legislation for cryptocurrencies

SEC Chairman Gary Gensler sat down for an interview with Yahoo Finance, stating that the current securities laws do not require separate legislation for cryptocurrencies. Here are the key points from the interview:

SEC Chairman Gary Gensler accepted an interview with Yahoo Finance, stating that current securities laws do not require separate laws for cryptocurrencies. Here are the key points of the interview:

• Non-compliant lending platforms and exchanges will have nowhere to go, and making them compliant is the goal
• Regarding the world of cryptocurrencies, he believes that the SEC has sufficient jurisdiction
• Cryptocurrencies operating outside the law will not sustain for long
• If lending platform Nexo leaves the U.S., it is a way to protect investors
• Brokers cannot use client assets for trading and must ensure asset segregation, which is a preexisting regulation
• Cryptocurrencies are high-risk assets
• Why would these cryptocurrencies fail? Because history tells us that "micro currencies" are not necessary nor will be used
• If investors are to invest in these assets, they must disclose information like regular companies
• Roles in the cryptocurrency market: brokers, exchanges, and hedge funds, their roles align with those already regulated in securities laws
• The difference is that it is still a lawless frontier, and much of it is overseas
• Meetings with SBF and the message to the public are the same: move towards compliance
• Exchanges have multiple roles: broker, trading, lending, hedging, etc., and these should all be separated