(Reuters) – The chairman of the US Securities and Exchange Commission, Gary Gensler, said on Monday that the agency is considering how it could extend investor protection for users of exchanges and alternative trading platforms to crypto trading platforms.
The expanded SEC oversight would allow the agency to regulate platforms where securities and non-securities trading is “intertwined” by requiring them to register with the SEC, Gensler said in a virtual speech to an audience at the University of Pennsylvania. his alma mater.
The agency will also work with the Commodity Futures Trading Commission – its sister market regulator – to review platforms that trade in both crypto-based security tokens and commodity tokens, Gensler said, adding that a potential “segregation”; of token storage between trading platforms and clients’ assets would also be considered. help prevent theft.
“The crypto market is very concentrated, with the majority of trading taking place on only a handful of platforms … that play roles similar to the traditional regulated exchanges. Therefore, investors should be protected in the same way,” says Gensler.
“All symbols that are a security must follow the same rule book for market integrity as other securities under our laws.”
Much of the crypto-trading is based in offshore jurisdictions and operates in a gray area because they do not have a centralized system of supervision, which means that such trading can bypass the traditional gatekeepers for finance such as banks and stock exchanges.