Finst

SEC chief vows tougher stance on cryptocurrencies

Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), weighs in on the collapse of crypto giant FTX.

By Mike Hesp
• 1 min read
SEC chief vows tougher stance on cryptocurrencies

Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), weighs in on the collapse of crypto giant FTX. In an interview, SEC Chairman Gensler spoke about protecting crypto investors.

In the wake of the collapse of FTX, questions about official exchange regulation have grown louder. Gensler described a "toxic combination" of a lack of transparency and handling customer funds at FTX.

To protect the assets of crypto exchanges, the SEC wants to focus more in the future on three strategies:

  • Closer regulatory cooperation with exchanges and lending platforms to properly register them.
  • Strict enforcement of the law: The SEC scored a courtroom win earlier this week in this regard. The LBRY token (LBC) was deemed a security by the U.S. District Court in New Hampshire.
  • More education: Investors need to be better informed about the risks of investing in the crypto sector. This sector is "regulated but highly speculative," according to Gensler.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.