US Congress and SEC team up to regulate crypto exchanges
- US SEC seeks for more reforms in the crypto sector that will provide better protection of invertors’ interest.
- It stated that the main challenge facing crypto regulation is because agencies are under-resourced.
- SEC is collaborating with the Congress and other agencies to improve the regulation of crypto exchanges.
Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC) stated that the regulatory body is working with Congress to devise a more efficient means of regulating crypto exchanges.
Gensler said that the improved regulation is important to protect the interest of investors in the market.
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When answering questions about a new regulation for digital assets, he replied that it is challenging to create sufficient consumer protections due to the size of the industry.
Gensler admitted that his agency has been able to take 75 actions despite the thousands of crypto assets available in the industry. He further opined that crypto exchanges seem to be the best place to implement consumer protections.
The SEC has been under-resourced
He also pointed out that the industry is not receiving the level of attention it needs, adding that the authority spends only $325 million yearly on tech. However, some industry players spend twice as much as that in a month.
Gensler noted that the SEC is working closely with the U.S. Congress and other regulators to provide more investor protection in crypto markets.
The newly elected chairman stated that SEC should be providing the same level of protection for crypto exchanges an investor on Nasdaq or the NYSE is getting.
An improved crypto exchange regulation
He also mentioned some of the issues the industry is facing when it comes to regulation. Apart from being financially under-resourced, Gensler wants more effective reforms within the sector that will improve investor protection.
His suggestions fall in line with the announcement made by Michael Hsu, the new head of Officer of the Controller of the Currency. Hsu stated that the agency has engaged both the Federal Deposit Insurance Corporation and the U.S. Federal Reserve to set up an “interagency policy sprint team” which will only focus on the cryptocurrency industry.