SEC Chairman Gary Gensler pushed back against criticism of the SEC’s enforcement-driven regulatory approach to cryptocurrencies in an October 22 interview with Bloomberg Technology.
In response to criticism that the SEC has not adapted its approach to the evolving digital asset space, Gensler emphasized the importance of leveraging established laws to protect investors and maintain market integrity. repeated.
executive approach
The SEC's methods have come under increasing scrutiny, with criticism that reliance on enforcement stifles innovation and leaves corporate management uncertain.
Despite these criticisms, Gensler maintained that the current legal framework has been sufficient for nearly a century and remains adequate to regulate both traditional and emerging markets, including digital assets.
he said:
“For 90 years, we have benefited from strong legislation from Congress and regulations from various agencies.”
Mr. Gensler explained that the SEC's enforcement efforts are rooted in fundamental principles of disclosure and conflict prevention. He emphasized that market transparency is essential for investor protection, and that the lack of information disclosure in many crypto projects has resulted in significant losses for investors.
The SEC Chairman said:
“Many people are losing money in areas where basic disclosures about projects and investment agreements are not being made. Compliance must also be observed if the market is to have confidence.”
Gensler added that the SEC will continue to take necessary steps to protect investors, regardless of the impact on the industry. he said:
“That's what we're going to continue to do…and yes, even if it's because, like I said, too many people are hurting and too many people are losing money and dealing with… Their claims are even related to this new market that is lining up in bankruptcy court. ”
court ruling
Mr. Gensler then discussed the SEC's policy regulations and the regulator's role in the Fifth Circuit Court of Appeals, which Bloomberg Technology co-host Ed Ludlow called “kind of a business-friendly court.” He was asked how he is adjusting his stance on the court's ruling.
Notably, the aforementioned court ruled that the SEC “exceeded its statutory authority” by requiring hedge funds and private equity firms to be more transparent about their fees and expenses. .
Gensler responded that regulators act within the law and that courts interpret the law, adding:
“If the court has a different interpretation, we adjust. That's what we do and it's part of our great democracy.”
Bitcoin Sweet 16
Gensler also acknowledged the milestone for the crypto industry, noting that this year's Halloween generally marks the 16th anniversary of the publication of the Bitcoin White Paper under the pseudonym Satoshi Nakamoto.
Gensler used this milestone to emphasize that although the technology underlying cryptocurrencies is evolving, the principles of transparency and investor protection remain important.
He framed the SEC's enforcement actions as a necessary part of ensuring the industry adheres to the same legal standards as traditional markets.
He further reiterated that distributed ledger technology is consistent with existing securities laws and argued that the current regulatory regime is sufficient to oversee the industry.
