US Securities and Exchange Commission Chairman Gensler calls on Congress to help control the “Wild West” cryptocurrency Reuters

© Reuters.File Picture: A photo of Gary Gensler, Chairman of the US Securities and Exchange Commission, as Chairman of the Commodity Futures Trading Commission at the US Senate Banking Committee’s hearing on systemic risk and market surveillance on Capitol Hill in Washington

Katanga Johnson

WASHINGTON (Reuters)-The Chairman of the US Securities and Exchange Commission (SEC) called on Congress on Tuesday to give the agency more powers to better regulate cryptocurrency transactions, lending and platforms. He said this is a “crazy” full of fraud and fraud. Wild West”. Investor risk.

Gary Gensler said that the crypto market involves many tokens, which may be unregistered securities, prices are easily manipulated, and millions of investors are vulnerable to risks.

“This asset class is rife with fraud, scams and abuse in certain applications,” Gensler said at a global conference. “We need more congressional authorization to prevent transactions, products and platforms from falling into regulatory loopholes.”

As more and more investors deposit digital tokens in their investment portfolios, the cryptocurrency reached a record $2 trillion in April, but supervision of the market remains incomplete.

The industry has been waiting with bated breath to see how Gensler, the Democratic appointee who took over as the U.S. Securities and Exchange Commission in April, will supervise the market. He has previously stated that it should be included in the scope of traditional financial supervision.

On Tuesday, Gensler provided more insights on his ideas, saying that he hopes Congress will give the SEC the power to regulate cryptocurrency transactions, which are currently outside the SEC’s purview.

He also called on legislators to give the US Securities and Exchange Commission more powers to oversee crypto loans, as well as platforms such as peer-to-peer decentralized finance (DeFi) websites that allow lenders and borrowers to conduct cryptocurrency transactions without traditional banks.

“If we don’t solve these problems, I worry that many people will be harmed.”

Democratic Senator Elizabeth Warren has been urging regulators to control the market, which she described as “highly opaque and unstable” in a letter to Gensler in July.

Gensler responded by asking Congress to consider giving him more autonomy to regulate the industry.

On Tuesday, he also emphasized that “stock tokens, securities-backed stable value tokens, or any other virtual products that provide comprehensive exposure to underlying securities…are subject to securities laws.”

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