In his prepared statement for a forthcoming oversight hearing, SEC Chairman Gary Gensler reiterated his belief that most crypto tokens should be classified as securities.
Gensler underlined the compatibility of the crypto markets with securities regulations and emphasized the SEC's responsibility to safeguard investors, irrespective of the technology or terminology involved.
He maintained that the general public invests in crypto tokens anticipating profits and a brighter future, relying on the entrepreneurs backing these tokens.
The SEC chief expressed unease about the crypto intermediaries who frequently offer a combination of services that are generally distinct in conventional securities markets.
This blending of functions within crypto intermediaries results in inherent conflicts of interest and investor risks.
Gensler insisted that identifying oneself as a DeFi platform does not exempt one from complying with securities laws, and that such noncompliance endangers investors and jeopardizes public trust in the capital markets.In addition to discussing AI, climate risks, market structures, and money market funds, Gensler mentioned that he has requested SEC staff to formulate rule proposals related to AI for the Commission to review. This highlights the SEC's dedication to addressing emerging technologies and their potential influence on the market.
Gensler's statement underlines the SEC's commitment to ensuring that the crypto sector adheres to securities laws. As the industry continues to develop, regulatory scrutiny will likely intensify to protect investors and preserve the integrity of capital markets.