SEC Chair Gary Gensler has once again raised concerns about the operations of cryptocurrency exchanges. He believes that exchanges, which are a key element of the modern crypto market, do more harm than good.
In his interview with CNBS, he stated these platforms engage in practices that the New York Stock Exchange (NYSE) would never be permitted to do. His remarks underscore the ongoing regulatory scrutiny facing the crypto industry.
Gensler pointed out that crypto exchanges fail to provide the necessary disclosures to investors. This lack of transparency is a significant issue. Traditional exchanges like the NYSE are held to strict standards, ensuring investor protection, he said.
Moreover, Gensler highlighted a potential conflict of interest. He suggested that crypto platforms might be trading against their customers. According to Gensler, this behavior would be unacceptable on regulated exchanges.
The SEC Chair emphasized the need for regulatory oversight. He believes crypto exchanges should adhere to the same standards as traditional financial markets. Without proper regulation, investors remain at risk.
Gensler's comments come amid increasing calls for tighter crypto regulation. The SEC continues to investigate and address these concerns. As the crypto market grows, ensuring investor protection remains a top priority for regulators.
At the same time, many ordinary users still thinks that investor protection is in fact a kind of surveillance. There is a common narrative among experienced crypto users, which states that KYC and other security practices are limiting the users' right for privacy. There is a growing trend for no KYC exchange popularity. And there is a reason for that.
Gensler's critique of crypto exchanges highlights significant regulatory gaps. His stance is clear: these platforms must be held accountable. Yet, SEC is telling just one side of the story. And the tighter measures will be taken for investor protection, the more critics will fiercely attack Gensler's position.