SEC Chairman Says Modern World Doesn’t Need More Digital Currencies
During a recent interview on CNBC SEC Chairman Gary Gensler made a bold statement and declared that the modern world does not require additional cryptocurrencies or digital assets . Gensler argued that existing digital currencies like the US dollar, euro and yen already serve as digital forms of money and investments .
Cryptocurrency Exchanges Function as Unauthorized Financial Institutions, Says Gensler
The SEC accused Coinbase of illegally combining the functionalities of an exchange, a broker and a clearing agency . Meanwhile Binance faced allegations of mixing corporate and user funds which were sent to a company controlled by its founder Changpeng Zhao . Gensler criticized these cryptocurrency trading platforms for integrating multiple features that go beyond the bounds of traditional financial institutions .
“We do not see in traditional finance that the NYSE also manages the hedge fund markets” Gensler said . He pointed out the concerns about the complex nature of these exchanges which often perform functions that are not typical in the traditional financial sector . The SEC chairman stressed that the mixing of different roles and the lack of clear boundaries pose challenges .
SEC Chairman Emphasizes the Importance of Regulatory Compliance
When he faced questions about the timing of the SEC’s actions against well established companies like Binance and Coinbase Gensler defended the delay and stated that it was necessary to ensure proper devotion to the rules . He assured the public that the agency’s control of the cryptocurrency sector remains effective and strong .
Gensler restated the importance of regulatory compliance in the cryptocurrency space . He emphasized that investors should enjoy the same protections which are provided by US securities laws and cryptocurrency platforms should not be exempt from regulatory requirements . The SEC chairman highlighted the need for these agents to operate within the boundaries of existing regulations to safeguard investor interests .