SEC is correct: crypto needs regulations
The chair of the U.S. Securities and Exchange Commission (SEC) is, we believe, right that crypto trading platforms should be regulated.
The Financial Times published an interview with Gary Gensler last week, in which he said although he was “technology neutral”, crypto assets were no different than any others in terms of investor protection, guarding against illicit activity and maintaining financial stability.
Gensler’s stance on cryptocurrencies should be welcomed. With a market capitalisation of more than $2 trillion, and as they become an increasingly dominant part of the mainstream global financial system, cryptocurrencies such as Bitcoin, Ethereum, Cardano and XRP, amongst others, are here to stay and, therefore, need to be regulated.
deVere, which has a game changing influence over the industry, agrees with Gensler. As such, and as I said to Newsmax, Investors King, Bitcoin Insider and Finance Feeds, amongst other media, they need to be brought under the regulatory umbrella and be held to the same rigorous standards as the rest of the financial system. The ideal way to do this is via the exchanges.
Indeed, the majority of foreign exchange transactions are processed through banks or currency houses, which is what must happen with digital currencies. Then it will be far simpler to tackle criminal activity such as money laundering, and ensure tax is paid.
The SEC chair’s interview with the FT follows his calls in August for Congress to grant the SEC more power to oversee the expanding crypto market.
With institutional and retail investors taking Bitcoin and other cryptocurrencies more and more seriously, the SEC needs more powers over the market. These investors are increasing their exposure to crypto all the time, at a faster rate than ever. And now the SEC appears to recognise that digital assets are the inevitable future of money, and therefore need more oversight.
A robust, regulatory framework will help to protect investors, strengthen the sector itself, tackle crypto criminality and reduce the likelihood of disrupting global financial stability, not to mention providing a potential long-term economic boost to those countries which introduce it.
Cryptocurrency regulation is essential and looks to be on the way. As such, the action being undertaken by the SEC and other financial regulators across the globe should be championed.