The recently confirmed chairman of the US Securities and Exchange Commission, Gary Gensler sympathized with Congress to ensure better oversight of the crypto room, but also said the commission would act within its reach.
In a virtual audience that el House Financial Services Committee, the representative of North Carolina, Patrick McHenryasked Gensler what the regulator would do to: a “Vibrant digital asset market with legitimate money and law enforcement”. McHenry highlighted the collaboration between regulators regarding digital assets and cryptocurrencies.
Gensler said the cryptocurrency market could benefit from one “More protection for investors” within the current jurisdiction of the Securities and Exchange Commission (SEC) for securities and other financial products. He added that he believed that only the US Congress had the power to deal with such oversight, rather than the commission exceeding its authority under his leadership.
“Currently, the exchanges that manage these crypto assets have no regulatory framework in the SEC or in our sister agency, the Commodity Futures Trading Commission,” said Gensler. “That could instill a lot of trust. There is currently no market regulator for these cryptocurrency exchanges, so there really is no protection against fraud or tampering.”
Today’s hearing is the third Regarding the GameStop shorts controversy earlier this year. Lawmakers have been investigating allegations of market manipulation by Robinhood and large hedge funds in response to Redditoren and others initiated throttling of short positions in GameStop stock. GME’s price has been volatile since it peaked at $ 469.49 on Jan. 28, fell below $ 50, and has since hovered between $ 100 and $ 300.
Members of the Senate officially confirmed Gensler’s nomination last month, This was his first hearing on the GameStop controversy as SEC chairman. During his confirmation hearings with the Senate Banking CommitteeGensler said he supported the SEC, which excludes Bitcoin (BTC) from its regulatory scope.