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US Securities and Exchange Commission Chairman’s request to Congress: Establish regulations for digital currency exchanges


Gary Gensler, chairman of the US Securities and Exchange Commission, said yesterday that investors in a $ 2 trillion digital currency market need more protection. In another part of his speech, he called on the US Congress to develop a legal framework for the operation of digital currency exchanges.

to the the report In the first public hearing since his appointment as chairman of the Securities and Exchange Commission, Chancellor CoinDesk announced that the commission’s authority is limited to securities and asset managers who may operate in digital currencies. However, he said, Congress could bring more legal transparency, especially in the area of ​​exchange offices. He said in part:

At present, these exchanges do not have a legal framework in the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC). There is currently no legislation in the area of ​​these markets and therefore they have no protection against fraud and manipulation.

However, Gensler did not specify what the legislation of the exchange offices will be and what its features will be.

Gensler’s remarks were, in fact, his answer to a question from Republican Patrick McHenry about digital assets. In another part of his question, McHonry also referred to the law on security services. Gensler said he hoped for progress.

It is worth noting that McHanry is among the delegates who introduced the bill to distribute oversight duties between the SEC and the CFTC. He also raises the question of how Gensler can increase legal transparency regarding digital assets.

Thursday’s session was the third in a row by the House Economic Affairs Committee, which focused on the GameStop stock flow and the legislators’ response. It is worth noting that the value of GameStop shares earlier this year increased by about 9,000 with a marginal growth.

Gensler did not mention digital currencies in the text he prepared for the meeting, citing issues such as the GameStop stock jump and other market events such as the collapse of Archegos Capital.

He also gave a general talk on technology and the role of social media in public stock markets.

Technology can provide more access to our capital markets.

Referring to the role of online communities such as Reddit in raising stock prices, Gansler said he was not interested in suppressing the right to freedom of expression. He went on to say that he would like to answer the question of whether such communities have been used to promote destructive activities and market manipulation.

According to Gansler, the US Securities and Exchange Commission plans to release a report on the GameStop stock fever this summer.

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