The US Securities and Exchange Commission is committed to working with Congress and other regulators to strengthen supervision of cryptocurrency exchanges.
Gary Gensler, the newly appointed chairman of the Securities and Exchange Commission, said the commission looks forward to working with other regulators and Congress to fill gaps in investor protection in the cryptocurrency markets.
The official announced the plans at a hearing on Wednesday for the subcommittee on financial services and the government in the House of Representatives.
Gensler said the SEC must provide the same protection for cryptocurrency exchanges that an investor on the New York Stock Exchange or Nasdaq will receive:
“If you place an order in the app and say ‘Okay, I want to buy a stock,’ there are rules that protect you from someone not accepting your request and disagreeing with you. […] So they try to provide similar protection to stock exchanges where they trade cryptoassets as you might expect from the New York Stock Exchange or Nasdaq. ”
The new head of the Securities and Exchange Commission also outlined some of the challenges facing the regulation of the cryptocurrency industry, saying that the Securities and Exchange Commission “lacks financial resources” compared to some of the largest players in the industry. “We spend only about 16% or 17% of our budget, about $ 325 million a year, on technology, which is less than what large companies spend per month. Some of them even spend so much time in two weeks. ”
Gensler previously proposed to the Securities and Exchange Commission (SEC) to join Congress to properly regulate cryptocurrency exchanges at a market volatility hearing for the House of Representatives for financial services in early May.
Last week, Michael Xu, the new chairman of the Office of Comptroller, announced that the agency is in talks with the US Federal Reserve and the FDIC to create a “working group for rapid policy between agencies”, dedicated exclusively to cryptography.