Crypto Assets Are Same As Securities Why Treat The Differently | Gary Gensler

Regulating the crypto market has been something of recent times has been deliberated on by the senate house and other notable figure in the financial sphere.
In of recent the chairman of securities and exchange commission (SEC) in and interview gave reasons why crypto assets shouldn’t be treated differently from securities as regards it’s regulation.
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He further went on in saying that;
“These platforms, the crypto platforms, like stock markets, bring together buyers and sellers. Crypto platforms have millions, sometimes tens of millions of retail customers directly buying and selling on the platform without going through a broker.

With so many retail customers trading on crypto platforms, we should make sure those platforms offer similar protections. So I’ve asked our staff to work directly with the platforms to get them registered and regulation to ensure that those crypto tokens come in as well and register where appropriate as a security.”

From he’s point of view I totally agree but then again the structures which are backing them are totally different, at least from the little understanding which I have on both parties. The crypto market is not stable which is one of its uniqueness and there is no way it doesn’t create conflict of interest as regards the trading platform. In the Twitter session he continued in highlighting why regulating of the crypto exchanges is need.

“Crypto trading platforms also may act as market makers. It means that when you sell your tokens, one of the platforms may actually be buying on the other side. Stock exchanges don’t do this. They don’t serve as their own market makers because that creates inherent conflicts of interest.

Thus again I’ve asked staff whether it would be appropriate to segregate out the market-making functions of these crypto platforms.”

He then closed that there should be no reason for the crypto market be treated differently from securities as regards to regulation.
“There’s no reason to treat the crypto market differently just because a different technology is used. That would be like saying to drivers of electric cars don’t need seatbelts because they don’t use gas.”

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