SEC’s Gensler Lays Out US Crypto Regulation Stance to European Parliament

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has reiterated his stance on crypto regulation in a virtual speech to the European Parliament.

• Gensler addressed crypto assets among other areas of concern in financial services as part of an exchange of views with members of the European Parliament on Wednesday.
• The chair of the U.S. markets regulator described crypto as a “$2.1 trillion asset class” that is “truly global.”
• “It has no borders or boundaries. It operates 24 hours a day, seven days a week,” he said.
• In reiterating his stance on crypto regulation stated in various recent interviews, Gensler highlighted two broad areas of focus for the SEC: Platforms for crypto trading and lending, and stablecoins.
• “Crypto platforms provide direct access to millions of investors,” he said. “There’s no broker between the public and the platform. Therefore, absent clear investor protection obligation on these platforms, the investing public is vulnerable.”
• With regard to stablecoins, Gensler pointed to the $116 billion that already exists in a pre-Facebook diem world.
• “In July, nearly three-quarters of trading on all crypto trading platforms occurred between a stablecoin and some other token,” Gensler said. “Thus, the use of stablecoins on these platforms may facilitate those seeking to sidestep a host of public policy goals connected to our traditional banking and financial system: anti-money laundering, sanctions, and more.”

Read more: EU Policymakers Propose Tighter Regulation of Crypto Transfers