Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), said the agency could use its executive power to regulate the crypto industry.
Gensler noted that when it comes to crypto service providers, the public will benefit from investor protection moves.
Mentioning stablecoins, Gensler said that they are used as settlement tokens in trading and credit platforms. Gensler once again likened stablecoins to poker chips.
Gensler emphasized that stablecoins are similar to money market funds, noting that the public can generate income by investing money in such tokens.
“It may be appropriate for Congress to put its weight to ensure financial stability”
When reminded of his statements that most cryptocurrencies are unregistered securities, Gensler said, “If you are raising money from the public and the public is expecting profits based on these joint venture efforts, it is a security.”
Gensler said there is a difference between asset-backed securities and stock offerings, so explanations may differ. The SEC has urged names in the crypto industry to engage in dialogue with regulators.
Gensler also addressed the crisis in crypto lending platforms and warned investors of exorbitant revenues.
“If it’s too good to be true, there may be too much risk out there”
Struggling credit platform Celsius has officially filed for bankruptcy the other day.
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