Gary Gensler, the new US Securities, and Exchange Commission (SEC) chief in a Wednesday remark for the House Appropriations Committee subcommittee noted that the cryptocurrency market poses significant policy and investor protection questions, indicating the need for tighter regulations. He said,
“I look forward to working with fellow regulators and with Congress to fill in the gaps of investor protection in these crypto markets,”
Gensler said he wants to bring in significant investor protection regulations to the crypto markets quite similar to stock exchanges, something he has been saying since his first official testimony after taking over as the chief of SEC. Before his current statement, he appeared before the House of Financial Service Committee to testify about the GameStop social media market manipulation hearing where he stated a similar stance about the need to bring in better regulations to ensure investor protection.
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The appointment of Gary Gensler as the SEC chief was rejoiced by many in the crypto community given his past work experience as the MIT professor where he taught about Blockchain technology and cryptocurrencies. Many were hopeful that Gensler would advocate for easier regulations around crypto markets given his understanding of the space, however, the stance of the new SEC chief seems not much different at this point than the former chief Jay Clayton.
The continuous remarks about investor protection are primarily due to the recent trend of social media-fueled marker volatility which started with GameStop at the start of this year and later caught on with the crypto space in the form of the Dogecoin pump. The continuous talk about investor protection from the SEC chief could also play its part in delaying the approval of the first Bitcoin ETF in the US, where the SEC has already postponed its decision on the VanEck ETF application until June.