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SEC Chairman Gary Gensler says that there is no need to treat the crypto market differently from other capital markets. Noting that \u201cthe SEC will serve as the cop on the beat,\u201d Gensler encouraged crypto trading and lending platforms \u201cto come in and talk to SEC staff.\u201d<\/strong>\n<\/p>\n \n There\u2019s no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology.<\/p>\n<\/blockquote>\n \n The SEC chief stressed that no matter what the financial product is, whether it is an app, a lending platform, a crypto exchange, or a decentralized finance (defi) platform:\n<\/p>\n Across decades of cases, the Supreme Court has made clear that the economic realities of a product \u2014 not the labels \u2014 determine whether it is a security under the securities laws.<\/p>\n<\/blockquote>\n \n Gensler then reiterated that he encourages crypto trading and lending platforms \u201cto come in and talk to SEC staff,\u201d emphasizing that \u201cGetting these platforms into compliance with the securities laws will benefit investors and the crypto market.\u201d The SEC chief concluded:\n<\/p>\n In the meantime, the SEC will serve as the cop on the beat. As with seat belts in cars, we need to ensure that investor protections come standard in the crypto market.<\/p>\n<\/blockquote>\n \nSEC Chairman Gensler on Crypto Regulation<\/h2>\n
\nThe chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, authored an opinion piece published in the Wall Street Journal Friday on how crypto assets should be regulated. He described:\n<\/p>\n\n
\n\u201cRecent market events show why it is critical that crypto firms comply with securities laws,\u201d Gensler explained. \u201cIn recent months, some crypto lending platforms have frozen their investors\u2019 accounts or gone bankrupt. When it comes to bankruptcy, these investors have to get in line at the court.\u201d<\/p>\n\n
\nWhile acknowledging that \u201cThere are costs of complying with securities laws, just as there are costs to car makers of adding seat belts,\u201d the SEC chairman pointed out that \u201cthere is a path forward.\u201d<\/p>\n\n
\nGensler recently outlined what to expect<\/a> from the SEC on crypto regulation. He has been heavily criticized<\/a> for taking an enforcement-centric approach to regulating the crypto market. The SEC boss also said that while bitcoin is a commodity<\/a>, most crypto tokens have attributes of securities<\/a>, warning<\/a> that a lot of them will fail.<\/p>\n