SEC Chairman warns again: Keeping a close eye on lending platforms, exchanges, stablecoins, and token issuance mechanisms

Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), participated in a meeting of the Committee on Economic and Monetary Affairs in the European Parliament today (2), discussing transatlantic cooperation in the financial services sector. During his speech, Gary Gensler mentioned that regulatory authorities are reviewing cryptocurrency exchanges, lending platforms, and stablecoins, as he believes that these present significant risks to investors in their usage.

Key Focus Areas in the Crypto Industry

Gary Gensler mentioned the issue of platforms issuing tokens right at the beginning, stating:

These tokens are different from tokens used for money laundering. For investors who are trying to save or speculate on their future, these tokens are highly speculative. That is why they need to be included within the scope of investor protection.

In addition to the token issue, platforms are also something Gary Gensler believes needs special attention. He continued:

We are very focused on platforms, whether they are trading platforms or lending platforms. Most of the activities in the crypto market take place on these platforms, whether centralized or so-called decentralized.

Due to the decentralized nature of DeFi platforms, investors can trade directly with each other without the need for a third-party broker, presenting regulators with challenges they have not faced in scrutiny before. However, Gary Gensler believes that even so, DeFi platforms still exhibit a "considerable degree of centralization" in governance, fee models, and incentive measures.

Many of these platforms involve businesses related to stablecoins. Since the initial issuance of stablecoins, the stablecoin industry, with a total value of $116 billion, is gradually "converging" into the broader crypto field. Gary Gensler emphasized:

I believe, to some extent, this helps those who are seeking to evade public policy goals.

Comprehensive Supervision of the Crypto Industry

Due to the increasing popularity and high-risk, high-profit nature of the crypto industry, in recent months, there have been frequent reports of regulatory agencies in various countries strengthening their scrutiny of the crypto industry. Gary Gensler also mentioned:

Regardless of any industry, if it has any connection to the crypto industry in the past five to ten years, it will be included in the framework of public policy.

From Gary Gensler's remarks, it appears that the SEC will continue its past scrutiny, not only focusing on cryptocurrency exchanges but more comprehensive regulation of the entire industry. As a leading country in the crypto industry, the policies and systems in the US are likely to serve as legislative references for other countries. Compliance will undoubtedly be crucial in considering the development of various crypto fields in the future.