The cryptocurrency market will likely not survive without regulation, the Chairman of the US Securities and Exchange Commission (SEC) Chair Gary Gensler said in an interview with the Financial Times. Gensler noted that historically no entity can last long without a regulatory framework.
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"At about $2 trillion of value worldwide, [the market is] at the level and the nature that if it is going to have any relevance five and 10 years from now, it is going to be within a public policy framework. History just tells you, it does not last long outside. Finance is about trust, ultimately," he explained.
Gensler also said he was disappointed with the industry's protest to his suggestion that cryptocurrency-related platforms should be registered with the watchdog. According to SEC Chair, over 95% of the activity of "highly speculative asset" takes place in these services.
He also believes that many tokens are rather securities than real cryptocurrency, however, the SEC needs Congress' approval to regulate the market. Earlier this year, Gensler warned that the decentralized architecture will not save protocols from oversight. Particularly, he addressed those who control the governance of a token and fees within a smart contract.
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