SEC Chairman Gary Gensler on Wednesday emphasized the importance of investor protection and transparent capital markets when discussing the SEC’s approach to cryptocurrency regulation.
What happened: In an interview with Bloomberg, Gensler responded to concerns about the SEC’s approach to enforcing regulations in the crypto space, saying the SEC’s role is to protect the public interest and protect capital. It emphasized that this is consistent with a broader legal framework aimed at facilitating the formation of
“For 90 years, we have benefited from strong Congressional legislation,” Gensler said, referring to the SEC’s authority to regulate financial markets to ensure transparency and stability.
Gensler noted that the relatively young cryptocurrency market is exposing many investors to significant losses and emphasized the need for clear regulatory oversight.
“Too many people have been hurt, too many people have lost money, and too many people have lined up in bankruptcy court,” he said, stressing the importance of protections to prevent fraud and maintain investor confidence.
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He also pointed out that effective information disclosure and protection from conflicts of interest are fundamental to maintaining trust and avoiding market failures like those seen in the 1920s.
Gensler acknowledged that oversight of emerging financial sectors can be difficult, but suggested new rules for areas such as private credit and nonbank lending would continue to prioritize transparency, risk management, and competition. did.
Gensler noted that private credit markets “have not been tested by an inevitable recession,” but that growth could be beneficial to borrowers and investors if properly regulated.
The future of crypto regulation will be a key topic at Benzinga’s “Future of Digital Assets” event on November 19th.
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