US Securities and Exchange Commission (SEC) Chairman Gary Gensler said crypto intermediaries should be registered under the SEC.
Speaking his testimony at a hearing titled “Oversight of the U.S. Securities and Exchange Commission” on Thursday, Gensler referred to securities laws as the "gold standard" for capital markets.
Gensler suggested most crypto tokens are securities, and therefore centralized and decentralized crypto intermediaries should be registered with the SEC in some capacity.
Given that there are a lot of non-compliance in the cryptocurrency space, there are currently too many platforms that are not strictly compliant and not properly registered, he has asked SEC staff to register and regulate tokens of companies linked to cryptocurrency assets as securities, where appropriate, and also to require intermediaries, such as exchanges, broker-dealers, and institutions with custody functions, to register with the SEC in some capacity to trade securities.
In the transcript of his speech, Gary Gensler said stablecoins also need to be registered and regulated because they are considered "stocks that could be money market funds or other securities."
Gensler pledged that the SEC would "continue to pursue robust enforcement actions" and develop its regulatory framework.
His statement echoed the course of action needed for the cryptocurrency industry to be yet to be regulated. He points out, "Given the Nature of crypto Investments, I recognize that it may be appropriate to be flexible in existing disclosure requirements."
For cryptocurrency intermediaries, Gensler said it may need to register with both the SEC and the Commodity Futures Trading Commission (CFTC) in one day to become dual registrants.
Gensler said a level playing field is essential if cryptocurrencies are to continue to grow. On additional regulation, the chairman said the SEC will look at all aspects to ensure that regulation does not stifle the market.Image source: Shutterstock