Gary Gensler, chairman of the U.S. Securities and Exchange Commission, recently warned cryptocurrency platforms of the risks they face because of their inability to operate within the country’s regulatory framework. The chairman pointed out that the $2 trillion industry is too large to exist outside the “public policy framework.”
Gensler also expressed disappointment with the industry’s response to initial calls for the registration of trading platforms with the SEC.
Gensler said that cryptocurrencies and decentralized finance (DeFi) platforms pose a challenge to regulators because they exist without traditional brokers to whom the law could apply, instead creating a platform for investors to deal directly with each other.
In his interview with Financial Times, Gensler explained, “At about $2 trillion of value worldwide, it’s at the level and the nature that if it’s going to have any relevance five and 10 years from now, it’s going to be within a public policy framework. History just tells you, it doesn’t last long outside. Finance is about trust, ultimately.”
For more information, read the original story in Arstechnica.