At a hearing held on Wednesday by the House Appropriations Committee, the U.S. SEC chief Gary Gensler, advocated for increased funding in order to combat the rising problem of non-compliance in the cryptocurrency sector. Gensler acknowledged that the Securities and Exchange Commission is presently “stretched thin” in its ability to investigate newer concerns surrounding crypto.
Gary Gensler Seeks More Resources
In his testimony, Gensler referred to the current status of the cryptocurrency markets as the “Wild West.” He asserted that the issue of non-compliance was widespread, and that the investor funds were exposed to significant levels of risk. Furthermore, he emphasized how important it was for the SEC to expand in tandem with the growth and greater complexity of the capital markets in order to match the skills of unscrupulous actors.
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Although Gensler acknowledged that the agency presently had increased resources, the SEC head stressed that more could be employed to effectively battle non-compliance prevailing in the crypto space.
Gensler Insists Clear Rules Exist
During his hearing, Gensler also discussed about the pre-existing regulations that are applicable to digital assets. He stated that transparency obligations for people who are attempting to raise funds are already incorporated into the regulations governing securities. The SEC chief was quoted as saying:
The regulations actually already exist, sir. They’re called the securities regulation, and so there are disclosure regulations for when somebody tries to raise money from the public.
Throughout his brief testimonial, Gensler made it clear that he believes the vast majority of coins and tokens in the crypto market are securities, with Bitcoin being the one exception. This year, the SEC has focused its attention on some of the most well-known cryptocurrency brands, and the agency’s crackdown has become increasingly severe since the sudden and abrupt demise of the digital asset exchange FTX in November.
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