April 6, 2022

Crypto Regulation: Gensler’s Latest Views

Chair Gensler spoke this week at University of Pennsylvania and expressed his views on the role of the SEC in regulating various aspects of the crypto market. He focused on three areas: platforms, stablecoins and tokens. Gensler highlighted investor protection concerns in these areas and noted the role that the Commission has in protecting investors in each of these areas. In conclusion, Gensler stated:

In conclusion, new technologies come along all the time; the question is how we adjust to that new technology. But make no mistake: We already live in a digital age. That’s not what’s new here. We already can buy a cup of coffee with money stored in an app on our smartphones. The days of physical stock certificates ended decades ago. There’s nothing new about people raising money to fund their projects. Crypto may offer new ways for entrepreneurs to raise capital and for investors to trade, but we still need investor and market protection.

We already have robust ways to protect investors trading on platforms. And we have robust ways to protect investors when entrepreneurs want to raise money from the public.

We ought to apply these same protections in the crypto markets. Let’s not risk undermining 90 years of securities laws and create some regulatory arbitrage or loopholes.

– Dave Lynn