Gary Gensler said that there is no difference between crypto & security exchanges.
Gary Gensler is Chairman of the US Securities and Exchange Commission (SEC). Gary joined the SEC agency in February 2021 temporarily to head the SEC agency but later in the same year, he secured the permanent position of chairman as a most eligible person. In the initial days, many crypto experts claimed that Gary may support the crypto industry because he spent some time studying & educating crypto & blockchain. Indeed, Gary is working as a strict person at his position and his statements do not remain crypto-friendly.
On 28 July, Gary Gensler shared a video on Twitter, in which he explained the nature of cryptocurrencies more likely to be Security assets and suggested crypto exchanges get registered with the SEC agency under the securities law.
The SEC chairman said that there is no reason to treat cryptocurrencies differently from traditional Securities assets because crypto assets only operate on different technology, which is what we calls Blockchain, but nature is similar to Securities.
Further Gary claimed that if a person is holding all his stock assets on the New York Stock Exchange then it will never be lost or taken by someone but if we consider the same thing with crypto exchanges then there are huge risks because of the “inherent conflicts of interest.”
This was not the first time when the SEC Chairman criticized the crypto exchanges. Earlier in May, in an interview with Bloomberg, he said that many crypto exchanges are trading against their customers.
SEC investigation against Coinbase exchange
Around a week ago, Bloomberg reported that the US SEC agency is investigating Coinbase’s crypto offerings. According to Bloomberg, the SEC will figure out whether Coinbase violated securities law or not because allegedly it was providing trading of those crypto assets, which are bearing securities nature.