SEC Chief Says Crypto Exchanges Need Regulatory Oversight
(Bloomberg) -- Securities and Exchange Commission Chair Gary Gensler doubled down on his calls for more oversight of cryptocurrency trading platforms on Wednesday, offering new insight into his priorities as he seeks to crack down on the digital coin industry.
Gensler reiterated the need for digital asset exchanges to register with the SEC -- a move that could bring more investor protections and compliance costs for the firms. He said that the agency is open to working with platforms around thorny issues like custody of tokens, but also said that the firms could face enforcement actions if they don’t comply with the watchdog’s rules.
“Work with us,” Gensler said in response to questions from former SEC Chairman Jay Clayton during the Digital Asset Compliance and Market Integrity Summit, sponsored by crypto firms. “These platforms need to come in get registered, come within the investor protection remit.”
Since becoming SEC chair in April, Gensler has taken a tough line on crypto, which he often refers to as the “Wild West” of finance. Some of his harshest remarks have been about the platforms where coins trade, which has also drawn ire from industry executives. In September, Coinbase Global Inc. Chief Executive Officer Brian Armstrong accused the regulator of “sketchy behavior” and “intimidation tactics” after the agency threatened to sue the firm.
©2021 Bloomberg L.P.