The appointment of the new SEC chief might turn into disappointment for the cryptocurrency investors and traders. Due to his academic background and expertise in blockchain and Fintech technology, many people were sure that Gensler would introduce a more crypto-friendly environment under his reign. However, the former professor of MIT has put all speculations to bed and revealed the road map for SEC’s stance on digital assets.
Addressing attendees at the financial industry Regulatory Authority Annual Conference, Gensler said that SEC would not tolerate loitering and looting by the bad actors of the crypto world. He added that SEC is ready to safeguard the interest of the citizens to safeguard their family fortunes and lifelong savings from getting exploited by unsanctioned decentralized platforms.
The Thunder of Law is Getting Ready to Strike Down on the Crypto Exchanges
Gensler’s statement has made it clear that SEC is preparing to introduce strict regulations on all major and minor cryptocurrency agencies in the region. He even claimed that the regulatory agency would not refrain from implementing the law “evenly” and “aggressively.” As per Gensler, the digital assets are not just volatile but highly unstable asset class.
Contextually, the SEC chief seems to be focused on the hazardously increasing number of crypto scams in the wake of the massive crypto adoption. He pointed out in his brief that SEC is always preparing to deal with scams and Ponzi schemes no matter where they are present in the financial stratosphere. Many crypto stakeholders were expecting Gensler to act as an intermediary between the government and the crypto community to make way for a more conducive climate for digital assets.
Crack Down on Crypto Exchanges
While reading from his prepared statement, Gensler exclaimed that SEC would be going after any suspicious schemes like private funds, insider trading, and even fiduciary violations. He also pointed out that there is no room for scams like market manipulation and accounting fraud under the SEC’s watchful guard. The former CFTC chief was also found amiable to get support from INFRA.
FINRA or Financial Industry Regulatory Authority is a privatized financial institution that acts as a self-governed body. Gensler added that new technologies are always evolving, but the regulatory agencies must shape them and convert them into secure channels. Gensler thinks that blockchain technology is relatively new. He also instructed SEC and FINRA to be ready to handle more lawsuits pertaining to crypto, fintech, and cyberspace.
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