Gary Gensler, the current Chair of the US Securities and Exchange Commission, believes that Washington’s financial watchdogs should actively supervise bitcoin trading platforms. He expressed hope that more monitoring will take place this year to provide investors with more protection when dealing with bitcoin and altcoins.
The 64-year-old American has often said that stricter investor rules are needed in the digital asset market. Last year, he expressed his admiration for the business but stated that this will not prevent him from advocating for tighter market controls.
“I’m not neutral about investor protection. If somebody wants to speculate, that’s their choice, but we have a role as a nation to protect those investors against fraud,” Gensler said at the time.”
Throughout a recent virtual press conference, he reaffirmed his position, stating that bitcoin exchanges should face further scrutiny from the SEC and other financial regulators this year. He anticipates that the increased monitoring will offer investors the required safeguards when dealing with digital assets.
“I’ve asked staff to look at every way to get these platforms inside the investor protection remit. If the trading platforms don’t come into the regulated space, it’d be another year of the public being vulnerable,” he concluded.
It is worth noting that the SEC appointed a new senior advisor at the end of 2021, whose primary responsibility is to advise Chairman Gary Gensler on cryptocurrency rules. The new executive’s name is Corey Frayer, and he has previously worked on “issues ranging from consumer and investor protection.”
The comprehensive crypto prohibition imposed by the Chinese government within its borders was one of the year’s major events in the digital asset market. Following that, a number of other countries began to consider whether they should follow suit.
Gary Gensler stated in October that the United States will not be one of those countries. While following the Chinese way is not on the cards, the Chairman stated once more that financial authorities have focused on improving investor protection in the field.
Fed Chair Jerome Powell also stated that the United States has no plans to limit the use of digital assets. He, like Gensler, advocated for increased space surveillance.