The broader cryptocurrency industry contains “a lot of noncompliance” and the U.S. Securities and Exchange Commission (SEC) is continuing to develop its regulatory framework, SEC Chair Gary Gensler said Tuesday on Bloomberg TV's "Balance of Power" show.
Gensler mentioned trading and lending platforms that have taken in money and in some cases failed, saying those businesses fall under “classic parts of the securities laws.”
“We at the SEC are going to do what we can,” Gensler said, but added there are currently too many platforms that haven’t properly complied with the law and registered accordingly.
When it comes to the crises faced by many crypto lenders and exchanges recently and what type of regulation is now needed, Gensler said "it's a mixture of things," including collaborating with market participants and reworking some investor protections. And he noted that the SEC needs to be “technology neutral” yet still protect the public.
If crypto is to continue, more trust in the system is necessary, he said. With respect to more regulation, Gensler said the SEC already maintains “a lot of laws on the books that have been there for decades.”
He said many crypto tokens have attributes of being promotional and raising money from the public and promised the SEC will “continue to bring robust enforcement actions."
