(Reuters) – The chairman of the US Securities and Exchange Commission on Tuesday called on Congress to give the agency more authority to better police cryptocurrency trading, lending and platforms, a "Wild West" that he said is full of fraud and investor risk.
Gary Gensler said that the crypto market includes many tokens that can be unregistered securities, leaving prices open to manipulation and exposing millions of investors to risks.
"This asset class is full of scams, frauds and abuses in some," Gensler told a global conference. We need additional congressional authorities to prevent transactions, products and platforms from falling between regulatory cracks. "
Cryptocurrencies reached a record high of $ 2 trillion in April as more investors stockpiled their digital token portfolios, but market surveillance is still uneven.
The industry has been waiting to see how Gensler, a Democratic nominee who took the SEC rudder in April, will approach market oversight, which he has previously said should be introduced in traditional financial regulation.
On Tuesday, Gensler provided more insight into his thinking and said he would like Congress to give the SEC the power
He also urged lawmakers to give the SEC more power to monitor cryptocurrencies, and platforms such as peer-to-peer decentralized financial sites that allow lenders and borrowers to trade. in cryptocurrencies without traditional banks.