Gary Gensler, chairman of the U.S Securities and Exchange Commission (SEC), criticized the virtual asset market, referring to it as the “Wild West”. He also argued that the SEC should have greater authority to oversee the virtual asset market.
According to foreign media such as the Wall Street Journal (WSJ) and Financial Times (FT), Chairman Gary Gensler said in a speech on August 3rd (local time) at the Aspen Securities Forum that the SEC would regulate virtual asset markets to the highest possible level and oversee Congress.
“Right now, the SEC is not sufficiently protecting investors in the virtual asset market,”
To prevent investors from getting caught up in the “Wild West” of virtual assets, he argues, the SEC should be able to regulate crypto-currencies more explicitly than it currently does.
“There is a gap in the regulation of virtual assets, so additional powers must be approved by Congress to ensure that transactions, products and platforms do not fall into a regulatory vacuum,” Gensler said.
“Americans are buying, selling, and borrowing virtual assets on decentralized financial platforms, etc., but there is a huge void in investor protection,” he said.
He lectured on decentralized finance, which is a relatively new area in the virtual asset market. “The world of virtual asset finance has now not only created a platform where people trade virtual assets, but it has also expanded to a stage where people can lend virtual assets,” said Gensler. Monitoring is necessary, he said.
According to him, stablecoins, whose value is tied to fiat currency such as the U.S. dollar, also meet the definition of a security or investment company, and the SEC can exercise oversight authority over them.
As a result, Gensler noted, stablecoins are typically used by traders to trade virtual assets, and nearly three-quarters of July’s platform transactions involved stablecoins.
“The use of stablecoins on these platforms amounts to a departure from the broad public policy objectives associated with traditional banking and financial systems,” he said. “, he criticized.