US Securities and Exchange Commission (SEC) chair Gary Gensler has argued that the financial regulator should not be burdened with fully regulating crypto assets, proposing that Congress takes on the role instead.
During a House Committee on Financial Services hearing on Thursday, Gensler said that SEC would step up its regulatory oversight of cryptocurrencies and associated assets but would act within its legal purview and no further.
He was responding to a question asked by Carolina representative Patrick McHenry, who asked what SEC would do to ensure that the digital asset market continues to develop while staying within the rule of law.
According to Gensler, one of the things that would benefit the crypto space the most would be better guarantees for crypto investors. Gensler further noted that the US Congress is fully within its powers to pursue this type of regulatory action rather than ask SEC step out of its jurisdiction.
“Right now, the exchanges, trading in these crypto assets, do not have a regulatory framework either at the SEC or our sister agency, the Commodity Futures Trading Commission”, Gensler explained.
He stressed that the lack of a well-defined and legitimate regulator, means digital assets and consumers are not protected against fraud or manipulation.
While Gensler had been touted as a supporter of cryptocurrencies and someone who understands the world of digital assets well, he has made a case for excluding Bitcoin from SEC’s regulatory reach.