The United States SEC [Securities and Exchange Commission] is looking to cooperate with Congress and other regulators to extend its oversight of cryptocurrency exchanges.
The newly appointed chairman of the SEC, Gary Gensler, revealed that the commission is looking forward to working with fellow regulators and Congress to fill gaps in investor security in crypto markets.
In line with an official announcement on Wednesday hearing before the Financial Services and General Government subcommittee of the House of Representatives. Gensler outlined that the SEC must provide similar protections for cryptocurrency exchanges that an investor would get on the NYSE or Nasdaq:
“If you placed an order on an app, and you said, ‘Alright, I would like to shop for a stock,’ there are rules that protect you that somebody won’t use your order and obtain it before you. […] So, it’s trying to bring similar protection to the exchanges where you trade crypto assets as you would possibly expect at the NYSE or Nasdaq.”
The new SEC head also outlined a number of the challenges to regulating the cryptocurrency industry, stating that the SEC is “under-resourced” in financial terms in comparison with a number of the large players within the industry. “We only spend about 16% or 17% of our budget, about $325 Mln a year, on technology, which is a smaller amount than probably some large firms spending within a month. A number of them even spend that much in a fortnight,” he added.
Gensler previously suggested that the SEC should be cooperating with Congress to properly address crypto exchange regulation within a market volatility-related hearing of the House FSC, held earlier in May.
Also last week, Michael Hsu, the new head of the Office of the Comptroller of the Currency, announced that the agency has been in talks with the U.S. Federal Reserve and therefore the Federal Deposit Insurance Corporation about fixing an “interagency policy sprint team” focused exclusively on crypto’s.