On September 14, the chairman of the US Securities and Exchange Commission, Gary Gensler stated his opinion related to the crypto sphere before a Senate committee.
Related: Gensler points out the need to regulate the DeFi market
According to him, major crypto exchanges should register as securities exchanges. The Senate Banking Committee issued Gensler's testimony, where he says a lot of protocols hold hundreds of tokens on them.The executive says every token has a legal status formed by its structure and framework. However, every crypto platform most likely includes securities. So, according to US laws, they should register with the SEC unless they are authorized to be exempt.
Gensler mentioned DeFi and crypto regulations by the SEC previously. He said that at the moment the crypto industry mainly doesn't operate according to the regulatory frameworks, which is necessary to protect investors and consumers, ensure financial stability and prevent illegal activities.
The SEC chairman says if cryptocurrencies are commodities, they must be regulated by the Commodity Futures Trading Commission (CFTC). While the SEC will require reports on securities exchanges.