Due to the speculative nature of cryptocurrencies, investors need more protection or they may lose their confidence in the markets. This was stated by the head SEC Gary Gensler writes to Reuters.
The official said that as a rule, buyers of cryptocurrencies do not receive the amount of information typical for other asset classes. Gensler added, for example, that it has to do with the trading platforms used or whether users actually have money in their digital wallets.
“We have an important deal: you, investors, can choose about acceptable risk, but disclosure is expected to be thorough and honest. “People shouldn’t lie to you,” Gensler said at the annual conference of financial regulators in Washington.
According to him, cryptocurrency markets are considered decentralized, but in reality most of the activity takes place on a few major trading platforms. Gensler said that along with token issuers, they need to work with the SEC to improve industry regulations and inform consumers.
Regarding crypto platforms, he reminded of the need to adhere to the fundamental principles of the market, such as “fighting fraud, manipulation and insider practices, providing a real order book, not an imaginary one”.
Gensler noted that he will continue to work with the SEC. CFTC to cover the audit of all types of cryptocurrencies.
“There’s a lot of work to be done here and so far the investors are not well protected,” he said.
Recall that in May the regulator allocated 20 additional positions to the Crypto Assets and Cyber Unit.
SEC Commissioner Hester Pierce criticized the ministry’s decision.
Source: Fork Log
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