U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler spoke about cryptocurrency regulation and the issue of cryptocurrency exchange FTX in an interview.
Investors are hurt when a cryptocurrency exchange mixes a bunch of customer funds without disclosing it and uses borrowing to fight it, Gary Gensler said. I think investors need better protection in this space.
But what I would say is that this is an area of clear non-compliance, but it has regulations, and those regulations are often very clear, and we have multiple paths. One path is to work with those crypto exchanges, crypto lending platforms and have them properly registered, why is that important, because then the public is protected.
Another path is law enforcement, Gensler stressed. Between my predecessors and now the SEC team, we’ve filed at least 100 lawsuits, and we’ve been very clear on these different enforcement actions.