Gary Gensler, the Chairman of the US SEC says there isn’t any reason to treat the cryptocurrency market in a different way than other capital markets only because it relies on different technology. According to the Wall Street Journal, Gensler mentioned the importance of investor protection, citing the Securities Act signed by President Franklin Roosevelt during the Great Depression.
Related: The US Senate urged the SEC to strengthen control over crypto
The SEC Chair says recent events in the crypto industry including some lending platforms' freezing user accounts to seek bankruptcy protection, show why it's essential for the crypto companies to comply with securities laws.
Gensler says they can set aside the idea that crypto lending isn't subject to regulation. However, the rules have been around for decades and the platforms refuse to follow them. He added the rules refer to all kinds of crypto products whether they are lending platforms, cryptocurrency exchanges or a DeFi platforms. Gensler stated that investors benefit from knowing what stands behind the crypto firm's claims that it will provide a certain return.
The SEC chair concluded that noncompliance isn't the inevitable result of the crypto business model or the underlying technology.