Gary Gensler: We Should Exercise Greater Oversight Over Crypto Industry
Main page Opinion, Cryptocurrency
Hot topic
July 15, 2022

Gary Gensler, head of the SEC, has told Yahoo Finance that the regulation of digital assets should be strengthened in order to protect investors, but the regulator should not exercise exclusive oversight of the market.

According to him, the public will benefit from greater oversight in the field of digital assets, especially when it comes to supervising service providers such as lending platforms, exchanges and broker-dealers.

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Gensler has said:

"There are many crypto platforms that set the rate of return on deposits in the range of 4% to 20%. If you are an investor, you must be thinking that this is too good to be true. You have to think about how this is possible and what risk is involved in these proposals."

Gensler has reminded the basic rule: if the token is sold publicly and the investors' gain is directly dependent on the issuer's actions, it will be considered a security. However, he has pointed out such digital assets do not necessarily need to be regulated like stocks, but it is necessary to provide "basic protection" to consumers.

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