There is mounting pressure on crypto trading platforms to stay within the regulatory framework of the US. According to Gary Gensler, the Securities and Exchange Commission (SEC) chairman, the platforms are risking their survival by not heeding his advice. In an interview with the Financial Times, Gensler said that he is ‘technology neutral’. However, he said that as far as public policy imperatives are concerned, crypto-assets can’t be treated any differently than conventional financial instruments. He added that if crypto trading platforms operate within the regulatory framework, it would facilitate financial stability and also protect investors from illicit activities.
The worldwide value of cryptocurrencies is more than a whopping $2 trillion, and Gensler said that there’s no way that such a valuable market could operate outside the regulatory framework. He also expressed his disappointment with the response from the crypto industry after he suggested that all crypto trading platforms should comply with SEC registration rules. Gensler wants crypto trading platforms to adopt the attitude of asking for permission and ditch the attitude of begging for forgiveness.
Gensler’s views on cryptocurrencies and trading platforms have resulted in numerous debates between crypto advocates and skeptics. Advocates say that bringing cryptocurrencies under the umbrella of a regulatory framework would compromise its decentralized nature – one of crypto’s hallmarks. However, skeptics say that without regulation, cryptocurrencies could be used for a wide variety of illicit purposes. As of now, it isn’t clear as to the financial regulator in the country that’s supposed to monitor the activities of crypto trading platforms. One of Gensler’s demands is to make this authority a bit more explicit.