SEC Chairman Outlines Plan to Regulate Crypto Trading in a Video

Chairman of the Securities and Exchange Commission (SEC) Gary Gensler released a video on Thursday outlining how the securities agency intends to regulate cryptocurrency trading and safeguard investors. Gensler explains the similarities and dissimilarities between crypto trading systems and regular exchanges in the video. “When you trade on a stock market, you have certain protections,” he explained. SEC Chairman outlined – The SEC chairman detailed, remarking that crypto platforms service “millions, sometimes tens of millions” of retail customers who are buying and selling crypto assets directly through a broker. “There are so many retail clients on cryptocurrency platforms. With customers trading, we must ensure that those platforms provide the same level of security as traditional security platforms.” Gensler highlighted how he has asked the staff to “work directly with the platforms to get them registered and regulated,” reiterating his plan to “best ensure” the assets’ protection. Risk Associated With Crypto Exchanges Gensler then brought out another risk concern associated with cryptocurrency exchanges. “Unlike traditional securities exchanges, crypto trading platforms also may act as market makers,” he explained. “When you sell your tokens, one of the platforms may actually be buying on the other side,” the SEC chairman said, adding: “Stock exchanges don’t do this; they don’t serve as their own market makers because tha...