SEC Chief Calls for Centralization of Crypto Exchanges, Says “Work with us”

The infamous SEC Chief, Gary Gensler is back at it with more remarks on the need for regulations in the decentralized industry. Chair Gensler remotely spoke at the Digital Asset Compliance and Market Integrity (DACOM) Summit, asserting the need for crypto exchange platforms to get registered with the SEC in lieu of consumer protection. He even offered that the commission is ready to have discussion of themes like token custody with the exchanges.

However, Gensler reiterated that upon failure to meet the laws laid down by the SEC, crypto platforms may face regulatory wrath. The present SEC Chief, Gary Gensler was facing the former SEC Chairman, Jay Clayton at the DACOM Summit, where Gensler said that the crypto exchange platforms should “Work with us (SEC)”. Additionally, both SEC Chiefs claimed that they see a productive future for crypto, however, not without an “environment of trust.”

Gensler noted that “These platforms need to come in get registered, come within the investor protection remit.”

SEC Chiefs on Unregulated Crypto Businesses

Jay Clayton pointed out Gensler’s widely criticised comment where he levied crypto as the “Wild West”. In his defence, Gensler argued that his comments were in fact in reference to the Wild Cat banking era. He said that his intension was to compare crypto’s unregulated token minting to that of the Wild Cat era where multiple unregistered institutions issued their own currencies in the U.S. However, Wild Cat caused for the Dollar to become centralised along with creation of the central bank.

“There’s a lot of projects that have entrepreneurs raising money in the crypto markets and turning to gatekeepers, lawyers to track paperwork, saying, ‘how do we skirt by the authorities?’ and I don’t think that’s the right approach, but that’s similar to the Wild West,”, Gensler argued.

Towards the end of Q3, CoinGape had reported on Gensler’s stern warning against unregulated crypto exchanges. Gensler claimed that unregulated crypto markets and companies operating outside the regulatory purview “will not end well”, further arguing that compliance with the SEC’s rules shall pave the path to success.