WASHINGTON (Reuters) – The Securities and Exchange Commission is studying ways to make cryptocurrency trading platforms more efficient with the agency, according to chairman Gary Gensler.
Mr. Gensler has been a concern for crypto-trading platforms such as Coinbase Global Inc.
He said that for months, the SEC would allow investors to buy and sell securities. Marketing forums have been rejected. They argue that they list securities and cite various technical reasons for not enforcing the SEC regulation.
“These crypto platforms play roles similar to traditional control exchanges,” Mr Jensler said in a speech at the University of Pennsylvania School of Law. “So investors should be protected in the same way.”
On Monday, Coinbase declined to comment immediately.
Although they call themselves exchanges, crypto-trading platforms vary from controlled exchange in different ways.
In the equity market, an investor orders to buy or sell shares through a broker. The broker usually sends the order for exchange. The broker also manages the client’s assets separately from himself.
In the crypto market, trading platforms communicate directly with individual investors. They take ownership of their customers and act as marketers, often taking the opposite approach to business. This creates new risks and conflicts of interest, the SEC said.
Mr Jensler called on SEC staff to register crypto-trading platforms as exchanges and ensure that their clients’ assets are protected. This, he said, could require them to differentiate their control and marketing services from their other departments.
Last year, the crypto industry lobbied Washington lawmakers and policymakers to avoid falling into the hands of the SEC. Crypto currency developers say they find it difficult to meet the disclosure requirements set by the SEC for publicly traded companies.
Mr Jensler reiterated his commitment to the industry and reiterated the importance of controlling secret currencies.
“We are here to discuss and evaluate those risks, if any, of our employees, if there are any forms of non-compliance with crypto assets,” said Mr Jensler. However, he added: “Any safety margin should be played on the same market rules as other securities.
Write Paul Kiernan at [email protected]
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In the April 5, 2022, issue of Awake!