During a virtual hearing held by the House Financial Services Committee, Gary Gensler, the newly appointed chairman of the U.S. Securities and Exchange Commission, said that the cryptocurrency market could benefit from greater investor protection when asked about digital asset regulations by North Carolina Congressman Patrick McHenry:
I think that this market, which is close to $2 trillion dollars, is one that could benefit from greater investor protection.
Gensler specifically spoke about regulating cryptocurrency trading platforms, claiming that Congress should consider bringing greater investor protections surrounding them:
Right now, the exchanges trading in these crypto assets do not have regulatory framework either at the SEC or other sister agency, the Commodity Futures Trading Commission. That could instill great confidence. Right now, there's no market regulator around crypto exchanges, and thus there's really no protection gains fraud or manipulation.
The SEC boss also claimed that the agency would provide greater clarity for the crypto custody sector.