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SEC Chairman Says Crypto Events Highlight Industry Risks



(Reuters) — Turbulence in the cryptocurrency industry in recent days underscores the inherent risks because intermediaries handle so many core functions, Securities and Exchange Commission Chairman Gary Gensler said on Wednesday.

Mr Gensler used the events of the past few days – centered on concerns over the financial health of major cryptocurrency exchange FTX – to highlight the risks of a crypto industry that has operated outside the oversight of traditional financial markets.

“I’ve been saying this for more than a year now in this job: Come in, register, follow the securities laws,” Gensler said during a Healthy Markets Association event.

He noted risks from the “conflation”

; of key intermediary functions in the cryptocurrency world, where the same company has multiple roles, such as exchanges and market makers.

Cryptocurrencies have historically fallen into regulatory gray areas. The SEC, which is investigating FTX’s handling of client funds, has stepped up scrutiny of the crypto industry under Democratic leadership.


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