Gary Gensler: There's No Reason To Treat Crypto In A Special Way Even If It Uses Different Technology

Securities and Exchange Commission Chairman-Gary Gensler (Reuters)

JAKARTA – The chairman of the US Securities and Exchange Commission (SEC) Gary Gensler is working to improve the protection of crypto investors. According to him, retail crypto investors should also receive the same protection, so it's not just institutional investors. The reason is that currently only traditional asset investors are protected by the government.

This effort to expand investor protection was conveyed by Gensler at the Penn Law Capital Market Association Conference. He asked the SEC to explore getting crypto platforms listed by making them subject to the same regulatory framework as stock exchanges.

According to Cointelegraph, the SEC chairman said agency staff could work to address regulatory clarity in the crypto space by considering how to register platforms “where securities and non-securities trading exists” and whether crypto retail investors should receive the same protections as existing ones in traditional markets.

“Cryptops may offer new ways for entrepreneurs to raise capital and for investors to trade, but we still need investors and market protection,” said Gensler.

“We already have strong ways to protect investors trading on the platform. And, we have strong ways to protect investors when entrepreneurs want to raise money from the public. We must apply these same safeguards in the crypto market,” he added.

Gensler further emphasized that the crypto market should be treated the same as the traditional asset market even though cryptocurrencies use different technologies.

“There is no reason to treat the crypto market differently just because the technology used is different,” he said.

The SEC chairman urged crypto projects to register, which is intended to ensure that crypto retail investors receive equal protection.