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The chairman of the U.S. Securities and Exchange Commission warns that cryptocurrency trading platforms are putting their lives at risk if they do not heed the call to operate in accordance with local laws.
Gary Gensler told the Financial Times that while it remained “politically neutral”, the crypto economy was no different from all the others when it came to legal requirements such as the protection of traders, the protection of sexuality and the maintenance of economic stability.
“Approximately $ 2tn worth worldwide, it is on the scale and culture that if they are to support the last 10 years from now, they will be part of a government think tank,” he said. “History is just telling you, it doesn’t last long. Money depends on loyalty, in the long run. ”
Gensler was frustrated with the companies’ response to their request for trading platforms to register with the SEC on the grounds that a sufficient amount of cryptocurrencies is a security measure.
“Talk to us, come in,” he said. “There are a lot of working platforms today that can do better instead of others. . . I beg your pardon instead of asking permission. ”
Cryptocurrency trading platforms and the largest business in the US – Coinbase mentioned in New York wrote $ 1.6bn profit in the second section. However, it is not clear whether US regulators should monitor them. Gensler has asked Congress to make it clear to the authorities.
Gensler crypto’s comments carry some weight because he taught his studies at the Massachusetts Institute of Technology. On Wednesday, he is expected to testify on crypto and other matters before a European financial and legal committee.
Gensler said he had been looking at cryptocurrency trading platforms because 95% or more of what is happening in the “imaginary economy” takes place in these areas – and is protected by those who called themselves “minimal”.
He said money is money as well labor costs DeFi platforms are difficult for regulators because they exist without payers, which the law can easily apply. Instead, it provides an opportunity for investors to connect more effectively.
But he said regulators should be able to have control even on the expected platform. He stressed that DeFi was “not a really new concept”, but a diversity of fellow lending businesses that began in the early part of the century.
Just as there was a “middle-class” leasing company, he said, DeFi platforms have “the right place”, including management strategies, payment methods and incentive systems.
“It is absurd to say that it is a program that has been released online,” he said. “But it is not as central as the New York Stock Exchange. It’s an interesting thing in the middle. ”
Gensler also voiced his concerns Chinese companies lists in the US. He also mentioned that the vehicles mentioned were pathogens located in remote areas such as the Cayman Islands, which enter into agreements with Chinese companies.
“Is there real money from a company operating in China to pay or not?” he said. “There is a partnership agreement, and to say the least, the organizations that pay for it don’t pay.”
The SEC is also finalizing regulations that could halt sales in these companies if their readers do not allow U.S. regulators to review their books. Under the Trump-era Holding Foreign Companies Accountable Act, these companies have 2024 to comply with the rules until 2024.
Congress plans to bring the money forward later in the year. Mr Gensler said the committee would be prepared to adhere to the rules as soon as possible, meaning that Chinese companies could be closely monitored by 2023.
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