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- Gary Gensler revealed that cryptocurrency exchanges are the primary focus of the SEC in 2022.
- The additional scrutiny is key to protecting crypto traders and investors from cryptocurrency exchanges.
- Proponents argue regulations applicable to long-covered equities and bond trading should not apply to crypto exchanges.
US Financial watchdog, the Securities and Exchange Commission, has plans to crackdown on cryptocurrency exchanges in 2022. SEC Chair Gary Gensler revealed plans to tighten scrutiny of crypto exchanges.
SEC prepares for crypto exchange regulation this year
The US Financial watchdog, Securities & Exchange Commission, is set to crackdown on cryptocurrencies in 2022. Gary Gensler, the SEC chair, in a press conference on Wednesday said that he is prepared to increase scrutiny on cryptocurrency exchanges.
Gensler was quoted as saying:
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.
Gensler hopes that cryptocurrency exchange platforms take the needed steps to regulate through financial regulators in Washington. Gensler expects additional scrutiny to offer investors and traders protection while trading assets on cryptocurrency exchanges.
The Securities & Exchange Commission is keen on regulating the trading of assets on cryptocurrency exchanges, arguing that most tokens are similar to securities. Proponents have criticized the SEC’s stance and believe that cryptocurrencies and their trade on exchanges should not be subjected to the same regulations as those covering equities and bonds.
Sam Bankman-Fried, the founder of FTX exchange, thinks that there will be higher regulatory clarity on cryptocurrencies in 2022. This year, regulators and financial institutions are more optimistic and likely to regulate crypto assets.
The SEC chair is keen on regulating cryptocurrency exchanges in 2022 to ensure safety for investors and their investments in crypto assets. Cryptocurrency exchanges may need to work with regulators to get their investor protection remit before the end of the year.