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Gensler maintains that crypto exchanges have to register with the SEC

US Securities and Exchange Commission (SEC) Chair Gary Gensler has severally remarked that cryptocurrency exchanges and trading platforms can’t be treated differently from traditional stock exchanges.

And amid the increased regulatory spotlight on crypto, helped by recent events, the SEC boss has renewed that call.

In a video heshared on Twitter, Gensler says crypto platforms will better protect customers and see further growth consequently should they embrace regulatory compliance.

In accordance with Gensler, digital asset platforms (like regulated stock markets) might help protect an incredible number of users against aspects such as for example manipulation, fraud and front running, if they’re registered and properly regulated.

With so many retail customers trading on crypto platforms, we have to ensure that those platforms offer similar protections, he noted, adding that SEC staff have already been mandated to pursue registration of the crypto platforms. The main element, he explained, would be to ensure the exchanges are regulated as securities platforms where appropriate.

We’ve rules inside our capital markets to guard market integrity & drive back fraud & manipulation. In case a company builds a crypto market that protects investors & meets the typical of our market regulations, people will much more likely have greater confidence for the reason that market. pic.twitter.com/ZxdBfvmqXP

Gary Gensler (@GaryGensler) July 28, 2022

Conflict of interest?

Gensler also remarked that with crypto exchanges also acting as market makers, potential conflict of interest can harm investors. Therefore, he’s got asked staff at the securities watchdog to get whats possible pertaining to segregating out the marketplace making functionality from the digital asset platforms.

If the original exchanges dont do that market making why should crypto platforms be any different?

Look, theres no reason to take care of the crypto market differently, wish different technology can be used, he described.

Genslers comments come days after he reiterated the necessity to have crypto exchanges and lending platforms offer more disclosures within basic consumer protection. In addition they come amid reports the SEC is investigating crypto exchange Coinbase on the report on securities tokens.

Coinbase refutes these claims and alongside several industry players, say the agency is participating in regulation by enforcement.

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