On Thursday, the Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, released a video in which he outlined the SEC’s plans to regulate cryptocurrency exchanges and provide protection for investors.
In the video, Gensler breaks down the parallels and contrasts between traditional exchanges like the New York Stock Exchange and cryptocurrency trading platforms. Examples include the London Stock Exchange and the Chicago Mercantile Exchange (NYSE). When he began, he said, “When you trade on a stock market, you have some protection.” He went on to say that investors are “protected from fraud, manipulation, manipulation, and the like.”
The chairman of the SEC continued on the subject after noting that cryptocurrency platforms service “millions, maybe tens of millions” of retail users who are buying and selling crypto assets directly through a broker. He said, “There are so many retail clients on cryptocurrency platforms.” Due to the fact that clients will be trading, we need to make sure that those platforms offer the same level of protection as the traditional security platforms. He He remarked, “Imagine all of your stock being handed over to the New York Stock Exchange, which would never blow up.” He then said, “Therefore, I have asked workers how they work with the platform to assure the protection of your assets.” Do it.”
Next, Gensler discussed an additional danger that is intrinsic to cryptocurrency trading. According to what he explained, “unlike traditional stock exchanges, crypto trading platforms can also operate as market makers.” [Citation needed] The head of the SEC emphasised that when one platform sells tokens, it can really buy tokens from another platform.
He stated, “As a result, I have requested that the staff investigate whether or whether it would be acceptable to divide the market-making operations on these crypto platforms.”
In closing, the chairman of the Securities and Exchange Commission (SEC) emphasised: “There is no reason to treat the crypto market differently just because a different technology is used.” Suggesting that people who drive electric automobiles don’t have to wear seat belts is comparable to making that claim. because they do not make use of gas.