SEC Chairman Gary Gensler Invites British And Canadian Regulators To Take Action On Cryptocurrency Industry

Chairman of the US Securities and Exchange Commission, Gary Gensler. (Photo; Doc. Mashable)

JAKARTA - The crypto industry is increasingly becoming a concern amid talks about the separation of crypto markets from traditional markets. The wind is now shifting towards major regulatory changes in the space. This is despite clear signs of reduced confidence in banks amid the banking crisis that rocked the global market.

Even so, crypto prices are experiencing an impressive rally as the banking crisis has been going on over the past few weeks. This situation, however, does not imply easing within the regulatory environment for the crypto asset ecosystem in the United States unless lawmakers resolve its hurdles.

Coingape reports that KBW Nasdaq Bank Index, which tracks the performance of leading US public banks, has fallen by 28 percent over the past three weeks. This coincides with an 18 percent increase in Bitcoin prices in the same period. This condition indicates that more and more people are starting to switch to crypto assets as an alternative to protect their wealth.

The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, is believed to have lobbied his colleagues in the UK and Canada about maintaining a joint action plan for crypto regulation.

However, XRP attorney John Deaton stated that there have been significant differences between US and UK regulators in the past, by providing examples of Ripple tokens (XRP). The report says that the UK Financial Behavior Authority (FCA) is making efforts to make announcements regarding this matter.

Previously, Gensler faced a lot of criticism for saying that all cryptocurrencies expect Bitcoin to be securities. This is a big debate among the crypto industry, because if it is considered a security, then the government can strictly regulate Bitcoin. The SEC earlier this week issued a Wells notification to US-based crypto exchange Coinbase.

Some people think that strict regulations are needed to protect investors from risks associated with crypto investment. However, on the other hand, this could jeopardize the development of innovation in the crypto industry, as too strict regulations can narrow the scope of new technology and applications development in the sector.

In regulating crypto, there needs to be a balance between investor protection and innovation freedom. It is hoped that regulators can consider both of them in deciding the appropriate regulations for the crypto industry. With appropriate regulations, the crypto industry can develop healthily and provide greater benefits to society.