US SEC wants to work with Congress to regulate crypto exchanges

The United States Securities and Exchange Commission is wanting to cooperate with Congress and different regulators to improve its oversight of cryptocurrency exchanges.

Gary Gensler, the newly appointed chairman of the SEC, stated that the fee is wanting ahead to working with fellow regulators and Congress to fill gaps in investor safety in crypto markets. 

The official announced the plans at a Wednesday listening to earlier than the Financial Services and General Government subcommittee of the House of Representatives.

Gensler said that the SEC wants to present comparable protections on crypto exchanges that an investor would get on the New York Stock Exchange or Nasdaq:

“If you placed an order on an app to buy a stock, there are rules that protect you that somebody won’t use your order and get ahead of you. […] So it’s trying to bring the similar protections to the exchanges where you trade crypto assets as you might expect at the New York stock exchange or Nasdaq.”

The new SEC head additionally outlined among the challenges to regulating the cryptocurrency business, stating that the SEC is “under-resourced” in monetary phrases compared to among the large gamers within the business. “We only spend about 16% or 17% of our budget, or $325 million a year, on technology, which is less than probably some large firms are spending a month. There are some of them even spending that much in two weeks,” he noted.

Gensler beforehand suggested that the SEC ought to be cooperating with Congress to correctly tackle crypto exchanges’ regulation in a market volatility-related listening to of the House Financial Services Committee in early May.

Last week, Michael Hsu, the brand new head of the Office of the Comptroller of the Currency, announced that the agency has been in talks with the U.S. Federal Reserve and the Federal Deposit Insurance Corporation about establishing an “interagency policy sprint team” centered solely on crypto.

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