If US crypto markets and related platforms remain unregulated, things will go wrong. Gary Gensler, the US Securities and Exchange Commission (SEC) chairman, warned against this.
According to Gensler, there are trading platforms and lenders with hundreds, if not thousands, of tokens, circulating. “This doesn’t end well if these are left out of the view of regulators.” A token is a cryptocurrency. Gensler made the statements at a conference for programmers in Beverly Hills, California.
The SEC previously described cryptos as “the Wild West” and called for stricter oversight of the markets. The regulator also warned that previous initiatives by banks and other companies that offered alternative forms of money have failed.
Gensler declined to comment on previous statements by Coinbase Global CEO Brian Armstrong during the conference. He had said that the SEC regulated by filing lawsuits and that the agency exhibited “shady behaviour”.
Coinbase is the largest US digital coin trading platform. Coinbase previously decided, under pressure from authorities, not to release a product that would allow people to earn money by lending tokens. The SEC previously threatened to sue if Coinbase went ahead with the plans.