SEC Chairman Again Highlights Need for Greater Control Over Exchanges and Stablecoins

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SEC Chairman Again Highlights Need for Greater Control Over Exchanges and Stablecoins By Angel Di Matteo @shadowargel

According to the president of the SEC, Both exchanges and stablecoins serve as a vehicle for practices that can harm users, which is why the regulator requires greater powers to be able to address these markets.

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The president of the US Securities and Exchange Commission (SEC)Gary Gensler again highlighted the need for increased surveillance and monitoring, both of exchanges that hold users’ cryptocurrencies in custody and services that issue stablecoins pegged to the US dollar.

Concerns about exchanges and stablecoins

While Gensler has been adamant on the need for more regulatory oversight over certain sectors of the crypto space, the company’s top executive SEQ again reiterated this during a speech made today before the University of Pennsylvania School of Lawwhere he shared the following anecdote:

“Unlike traditional exchanges, centralized cryptocurrency trading platforms often take their clients’ digital assets into custody. Last year, more than $14 billion in value was stolen. I asked the person how to work with the platforms to register them, regulate them and ensure better protection of user assets, especially if it would be appropriate to segregate the custody of crypto assets.

In the same way, Gensler took advantage of the space to call attention to stablecoins, referring to important exponents of said sector (such as USDT and USDC), about which he indicated:

“The three largest stablecoins in the market were created by the trading or lending platforms themselves, and US retail investors do not have a direct right to trade two of the largest stablecoins in the market in terms of capitalization. There are conflicts of interest and market integrity issues that would benefit from more supervision.”

More need for control by the SEQ

Gensler’s words once again echo the need for a greater regulatory approach to this ecosystem of financial products and services, which is why he has not been able to implement measures to protect users against the boom that these assets are gaining every day.

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Last year, Gensler warned many projects DeFi that their operations could well fall under the jurisdiction of the SEC, as token trading could involve the use of assets that could easily be considered as securities.

On the other hand, another battle that seems to hold the SEQ is currently the dispute over the first Bitcoin ETFs listed on the US market. To date, the regulatory body has been rejecting all the requests that have been submitted for several years, precisely alleging possible market manipulations and high volatility in the price of the digital currency, which would serve as a direct reference for the corresponding price.

Analysts and enthusiasts assure that the SEQ would be waiting for a greater presence and control over the ecosystem of digital currencies to accept the first Bitcoin ETFs on US territory. However, this could also bring greater restrictions to the associated markets, which would mean greater controls and bureaucracy when carrying out commercial operations.


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Source: theblockcrypto, SEQ

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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