On Friday, Gary Gensler stated that the crypto market needs to implement more ways to protect investors. The chairman told CNBC that bitcoin and the cryptocurrency industry are recently attracting more traders and investors. He further said that the digital market industry needs more regulations to prevent fraud and other crypto-related cases.
Online security is among the challenges facing the crypto industry at the moment. How are you ensuring your safety in this unstable sector? You might have noted government involvement in ensuring customer security on different exchanges. For instance, recently, regulators requested Kraken to provide user data. Also, Korean administrations have launched various clampdowns to hunt illegal cryptocurrency brokers.
Referring to Bitcoin, Gensler admitted that the asset is in a highly volatile space. Moreover, the official stated that investor protection is vital as traders want to trade the digital coin regardless of its unpredictability. Do you think that investor protection is a subject that needs consideration?
The chairman later referred to bitcoin as a hypothetical store of wealth. And for that reason, SEC needs to be neutral in tech developments in the crypto markets.
Also read:You are aware that the cryptocurrency sector has been booming since the past year. What fueled digital market success? Well, various institutions adopted established digital coins moving financial markets to new heights. For instance, if you are a PayPal customer, you can now access crypto services. Retail traders also played a role in the flourishing industry.
Although hovering at around $10,000 in the past year, on Friday, BTC was trading over $57,000. Dogecoin, a meme coin, traded near its highest record.
Gensler, a former financial technology and blockchain teacher, said that there is a need for financial regulators to overlook crypto marketplaces, like futures and equity markets.
Gensler commented on the crypto influence resulting from social media platforms. He said that as much as any person or investor has the freedom to talk about the crypto industry, regulators need to formulate new and fresh rules to ensure that no one misleads the public.
What are your thoughts on Gensler’s move to protect cryptocurrency investors?
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