SEC Chairman Gensler: Crypto Exchanges Need 'Protection' Against Pre-Work

Gary Gensler, head of the US Securities and Exchange Commission (SEC), wants a deeper look at crypto exchanges. Speaking at a hearing by the Financial Services and General Government Subcommittee of the House of Representatives, Gensler said the SEC is trying to provide consumers with "similar protections" on crypto exchanges. New York or Nasdaq. "Without a police officer on the road and certain rules of the road, market participants can get ahead of your orders," Gensler said, referring to a prohibited practice in conventional financial markets. SEC Chairman Gensler: We must “ be ready '' to implement crypto cases, with the latest information on pending transactions publicly available on blockchains, and a transaction before completion with a higher gas price. The SEC is showing DeFi as a challenge. Gensler also said that the crypto space is growing rapidly. “We've all heard of Bitcoin, but currently there are more than 80 other tokens with a market value of over $ 1 billion and 1,700 tokens with a market value of over $ 1 million,” he said. told the subcommittee. The new analysis of data will help the SEC to monitor the industry, as well as "expand our resources". In his prepared comments to the committee, Gensler described crypto as "a highly volatile and speculative asset class", which necessitated oversight of the trading platform. He noted that recently reported crypto trading volumes fluctuate between $ 130 billion and $ 330 billion a day, but the numbers are unreliable as the numbers are not verified and reflect trading on unregistered crypto exchanges. . Along with other crypto-related challenges the SEC faced, Gensler referred to crypto lending platforms and decentralized finance platforms (DeFi), which "posed a number of challenges for investors and staff at the SEC they are trying to protect". The SEC is also asking for comment.

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