US Securities and Exchange Commission boss Gary Gensler has said cryptocurrency platforms have become so large that they need to embrace regulation or risk losing public trust as he hones in on the booming crypto trading sector. The US SEC chief said he is focused on trading platforms, where at least 95% of crypto activity takes place.
Crypto platforms may lose trust and become irrelevant if not regulated.
“At about $2 trillion of value worldwide, the crypto market is at the level and the nature that if it’s going to have any relevance five and ten years from now, it’s going to be within a public policy framework,” Gensler told the Financial Times in an interview published Wednesday. “History just tells you, it doesn’t last long outside. Finance is about trust, ultimately,” he noted. Gensler further said that they are focusing on cryptocurrency trading platforms because 95% or more of the activity in the “highly speculative” market takes place on them.
US lawmakers and regulators are increasingly concerned about cryptocurrencies.
US financial lawmakers and regulators are increasingly concerned about cryptocurrencies. Cryptocurrencies have become hugely popular with retail investors and even with some major institutions over the last year. The total value of all cryptocurrencies was more than $1 trillion on Wednesday, according to Coinmarketcap. Regulators broadly categorize bitcoin – the leading cryptocurrency – as a commodity more than a security. However, Gensler has said many crypto tokens are securities and has called for Congress to give the SEC more powers to govern the market. Several US regulators and politicians have voiced their opinion on cryptocurrencies.