SEC Chairman Gary Gensler on Crypto Regulations 

Written by: Mary McCarthy

As technology evolves and cryptocurrency expands in popularity for investors, conversations have arisen about the regulation of digital assets. Securities and Exchange Commission (“SEC”) Chair Gary Gensler has spoken out in favor of regulations for digital cryptocurrency assets, both for the investors’ protection and the overall integrity of the market.  

Having taught multiple courses at M.I.T on the subject, Gensler is highly versed in the finer details of cryptocurrency, blockchain technology, and financial technology. As the head of the SEC, Gensler will undoubtedly be an essential voice about proposed regulations for cryptocurrency. According to Gensler, protection of market integrity, transparency for investors, and protection against market manipulation are key aspects to consider when discussing proposed cryptocurrency regulations.  

A recent report from the Treasury Department states that the proposed regulations would ensure that cryptocurrency transactions exceeding $10,000 in value are appropriately reported to the IRS.  

In an interview with CNBC, Gensler stated that: 

“disclosure has been the hallmark for 90 years of our capital markets, that a company discloses what’s relevant to investors; they must have accurate information. At the core, investor protection has helped economic growth and capital formation. It builds trust and confidence in our financial markets, and it lowers the risk premium that someone is defrauding investors. At the core of our public policy is that investors can take risk as long as they have material disclosures that are kept current and updated.”  

In the same interview, Gensler emphasized the importance of the SEC remaining “technology-neutral” while debating any updates or regulations for cryptocurrency trading. Gensler noted that as technology evolves, it may be time to “freshen the rules to ensure that retail investors are not being misled or manipulated.” 

Ultimately, the goal of any proposed cryptocurrency legislation is to protect investors. Gensler has emphasized the need to curb fraud and manipulation of the market regarding digital currencies and exchanges. Gensler also noted the need for competition and transparency in the market, which is more important than ever for maintaining the integrity of an efficient market.  

Sources: 

Biography. SEC Emblem. (2021, June 9). https://www.sec.gov/biography/gary-gensler.  

Global Legal Group. (n.d.). Blockchain Laws and Regulations: USA: GLI. GLI – Global Legal Insights – International legal business solutions. https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/usa.  

U.S. DEPARTMENT OF THE TREASURY THE AMERICAN FAMILIES PLAN … home.treasury.gov. (2021). https://home.treasury.gov/system/files/136/The-American-Families-Plan-Tax-Compliance-Agenda.pdf.  

YouTube. (2021). Watch Cnbc’s full interview with Sec Chair Gary Gensler. YouTube. https://www.youtube.com/watch?v=gmTE9_KqpXo.

News

Recent Posts

Share:
Copy to clipboard
View All Posts