Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), said on Monday that the crypto market needs more regulation to protect investors from altcoin projects like Terra. Here are the details…
Gensler talked about two of the trending altcoins
Gensler accuses crypto trading and crypto wallet platforms of failing to disclose information that causes investors to lose their hard-earned money, as in the case of LUNA and UST. SEC Chairman Gary Gensler believes cryptocurrencies are speculative and most activity only takes place on a select number of trading platforms. Therefore, it is recommended that trading platforms and token originators work with the SEC to protect individual investors and institutions through rule and disclosure.
Speaking at the Financial Industry Regulatory Authority’s annual conference in Washington, Gensler claimed that the crypto market is decentralized because only a few crypto trading platforms control the market. It also states that these crypto trading platforms and crypto wallet firms must disclose the information to investors. Disclosures will help investors believe that a trading platform is not trading against them and that the assets stored in the wallets actually belong to them. The SEC Chair said:
We have a fundamental agreement: You, the investing public, can make choices about the risk you take, but there needs to be a full and fair disclosure and people shouldn’t lie to you.
Terra ecosystem collapsed
He said the SEC is working with the CFTC to protect investors who trade in cryptocurrencies, including Bitcoin. Gary Gensler thinks that crypto investors are not well-protected yet, and that more protection could increase investor confidence in the market. The comments came after the LUNA price dropped 99 percent in two days. As we also reported as
Kriptokoin.com, Terra’s UST stablecoin has been pegged to the US dollar. This, in turn, resulted in a crypto market crash that caused investors to lose billions of dollars. SEC Chairman Gary Gensler has previously stated that stablecoins should be regulated as they are used to trade different cryptocurrencies.
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