The regulation of the cryptocurrency exchanges demands further resources and authorization, wrote Gary Gensler in the letter addressed to Senator Elizabeth Warren.
Senator Elizabeth Warren is adamant in her quest to regulate crypto exchanges and correct the obscure and precarious industry even with the intervention of Congress should the need arise.
According to Gary Gensler, urgency should be given to decentralized finance platforms, as well as crypto trading and lending due to the risk of platforms, products, and transactions falling through the cracks of the regulations, thus additional authorities are required.
More resources are needed to protect crypto investors, per the letter. The issue about securities is crystal clear since tests are definitive in establishing a digital crypto asset is indeed a security. Moreover, it is unlikely that 50-100 token platforms will have no securities, even with the legal standing of each token being set by certain circumstances.
Gensler also stressed the issue of United States exchange platforms proceeding with offshore trading bans anyway. Unregulated trading platforms are facilitating overseas trades either by VPN or virtual private networks for US traders, even though platforms of other countries categorically prohibit investors from the US.
The topic of the ever-growing stablecoin market currently worth $113 billion and their imperative part in crypto trading was also elaborated by the SEC Chair.
By mentioning the frequency of the usage of stablecoins, Gensler pointed out that ¾ of exchanges in trading platforms were made between a token and a stablecoin. Thus, stablecoins may aid those wanting to dodge a multitude of public policy milestones related to conventional finance such as sanctions, compliance with taxes, and preventing money laundering, among others.