The United States Securities and Exchange Commission intends to cooperate with Congress and other regulators to increase oversight of cryptocurrency exchanges.
The newly appointed chairman of the SEC, Gary Gensler, said the commission looks forward to working with fellow regulators and Congress to fill gaps in investor protection in crypto markets.
Official Announced Plans at Wednesday’s hearing before the General Government Subcommittee of the Financial Services and House of Representatives.
Gensler said That the SEC is required to provide the same protection on crypto exchanges that an investor would find on the New York Stock Exchange or Nasdaq:
“If you placed an order on an app to buy stock, there are rules that protect you that no one will use your order and overtake you. […] So it is trying to bring the same security in exchanges where you trade crypto assets as you might expect on the New York Stock Exchange or Nasdaq.
The new SEC chief also outlined some challenges for regulating the cryptocurrency industry, stating that the SEC is financially “under-resourced” compared to some of the larger players in the industry. “We spend only 16% or 17% of our budget, or $ 325 million per year, on technology, which is probably less than what some big firms spend a month. Some of them even spend so much in two weeks are doing.” Noted.
Gensler first suggested The SEC should cooperate with Congress to properly address the regulation of crypto exchanges in a hearing related to market volatility in the House Financial Services Committee in early May.
Last week, the new head of the Office of the Comptroller of the Currency, Michael Hsu, Announced that the agency is negotiating With the US Federal Reserve and Federal Deposit Insurance Corporation regarding the establishment of an “intergency policy sprint team” focused specifically on crypto.