Gensler suggested that the connection between world markets requires that money flow each passing microsecond. He considers cryptocurrencies securities as they comply with all the aspects that the current legal framework highlights.
The cryptocurrency market is gaining ground as new investors seek to benefit from the scalability and volatility of those assets. That worries the large regulatory entities responsible for guaranteeing consumer or investor protection. For that reason, the chairman of the US SEC considers it necessary to establish rules to control their use worldwide.
The US chairman of the Securities and Exchange Commission, Gary Gensler, mentioned that multiple nations must collaborate to make that possible. That would facilitate and accelerate the maturation process of the cryptocurrency market as long as they consider investor security.
Gary Gensler Expects Europe to Help Regulate the Cryptocurrency Market
The official made multiple relevant points, which he discussed with various European regulators with whom he met. They discussed the growing use of cryptocurrencies in the world, besides other aspects of considerable importance.
Gensler suggested coming together to regulate cryptocurrencies properly, especially since world markets are connected. He explained that this makes it necessary for money to flow between them every passing microsecond. He also noted that new financial technologies are changing the way companies and individuals invest.
The SEC chairman said that the cryptocurrency market is in a neutral position regarding emerging technologies. However, he stated that it is necessary to start working on regulations to control it. He thinks no emerging financial innovation will prosper unless it is within the framework of public policy. He added that only the incorporation of new markets would allow them to mature and guarantee investor security.
Gary Gensler Considers that Cryptocurrencies are a Security and Must Have an Appropriate Regulation
Gary Gensler also told European regulators that he considers cryptocurrencies or tokens securities. They comply with all the aspects that the current legal framework highlights. Therefore, consumer protection must be at the forefront of regulations on crypto assets.
He stated that he believes that there are great entrepreneurs behind many of those digital assets or tokens. Besides, he said that an investing public expected to make a profit based on the effort made. He believes that US laws reviewed by the Supreme Court often make investment contracts securities.
For that same reason, Gensler believes that every security should be under surveillance and meet high disclosure standards to protect investors from fraud. However, he added it was necessary to adopt technologies like that of a cryptocurrency and learn from them. He explained that countries could do that even if they have totally different rules and policies.
Cryptocurrencies play a relevant role in the world economy, and many regulators seek to control their use. The SEC chairman believes that such financial innovations must be in a public policy framework to thrive. He highlighted the importance of including user protection when drafting regulations on crypto assets.
By Alexander Salazar
