Gary Gensler of the SEC Warns Many People “Likely to Be Hurt” Without Crypto Rules Like Bank Deposits, Insurance | Currency News | Financial and business news

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Gary Gensler became chairman of the SEC in April.
  • Gary Gensler warned that crypto investors “risk being hurt” if the digital asset space doesn’t have rules in place.
  • The SEC chairman also said crypto platforms that require users to invest money for returns will be regulated.
  • His comments came after Coinbase abandoned plans for Lend, its crypto lending program.
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U.S. Securities and Exchange Commission Chairman Gary Gensler has warned that cryptocurrency investors would be “likely to be hurt” if the digital asset space does not have the same kind of protection against the fraud and manipulation than some traditional banking instruments.

“This crypto space is now certainly of a size that without these investor protections from banking, insurance [and] securities laws [and] market surveillance, I think someone’s going to be hurt, ”Gensler said at the Financial Times’ Future of Asset Management North America conference. “A lot of people are susceptible to injury.

The SEC chief also said crypto platforms that require users to invest money for returns will be regulated. As such, they “should carefully review securities laws and discuss their listing with the agency.”

If they haven’t signed up in the past – as they should have – Gensler said they should now.

His comments came after Coinbase Global announced on September 20 that it was abandoning its plans for Lend, its crypto lending program that angered the SEC. Announced in June, Lend reportedly allowed customers to earn 4% interest on their cryptocurrency holdings by lending tokens.

The decision to drop the Lend program came to light after Gensler hardened its stance against crypto exchanges. The SEC had also warned Coinbase that it was planning to take enforcement action, saying its Lend product was considered security.

Still, Coinbase has other plans to further integrate digital assets into the realm of traditional banking. On Monday, the company unveiled a new feature that will allow users to deposit their paychecks directly into their accounts on the cryptocurrency exchange.


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