SEC Needs Clear Authority Over Crypto Platforms, Gensler Says

The SEC chair spoke of the agency's desire to "stitch together" consumer protection for tokens sold as securities and tokens sold as commodities.

By Jamie Crawley

Aug 4, 2021 at 1:34 p.m. UTC

Updated Sep 14, 2021 at 1:35 p.m. UTC

Financial Stability Oversight Council Meeting — SEC Chair Gary Gensler

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Jamie Crawley

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

The U.S. Securities and Exchange Commission (SEC) needs clear authority over platforms that trade or lend crypto, Chair Gary Gensler said.

Talking to CNBC's Squawk Box Wednesday, the SEC chief spoke of the agency's desire to "stitch together" consumer protection on platforms that offer lending or trading of both tokens sold as securities, and tokens sold as commodities.
Gensler said many crypto trading and lending platforms are "standing astride regulation," given this nuance.
"If they're trading securities, I'm encouraging them to come in and have a frank discussion," Gensler said, suggesting that many platforms are reticent to do so.
Asked about how the desire for robust regulation would naturally clash with bitcoin's original ethos of outsider money, Gensler praised the "off the grid, libertarian" values of crypto, but stressed the importance of preventing fraud, terrorism and other crime, citing the recent attack on Colonial Pipeline as an example.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jamie Crawley

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Jamie Crawley