The chairman of the US Securities and Exchange Commission recently said that the organization needs more legal authority to legislate in the field of digital currency.
to the Report In a letter to Senator Elizabeth Warren, Gary Gensler, chairman of the US Securities and Exchange Commission, warned that digital currency investors were not assessing the risk of their activities and were not adequately protected.
Senator Warren recently published a letter in which Gensler expressed his concern about the severe instability of the digital currency market and called for action in this regard.
Gensler wrote in this letter:
I think investors who use these platforms are not adequately protected.
Two days before writing the letter, Gensler commented on digital currencies at the Aspen Security Forum. The chairman of the US Securities and Exchange Commission spoke at the conference about fraud, fraud and digital currency-related abuses, and said he called on Congress to introduce more laws to cover the performance of digital currencies in the US financial system.
Gensler said in the letter that the digital currency industry is full of centralized and decentralized platforms that people can use to lend and trade tokens. He warned that stable coins could be used to circumvent traditional banking rules.
The chairman of the US Securities and Exchange Commission also said that it does not matter if a token or stable coin is tailored to securities or other financial instrument simulation products, all of these products will be subject to securities laws.
Senator Warren said he was pleased that Gensler had agreed to give more legal powers to the US Securities and Exchange Commission.
Warren also called for advancing the process of designing a comprehensive legal framework for regulating digital currencies.