The U.S SEC’s Chairman Gary Gensler, who is in charge of making regulations to safeguard investors’ interests, shared his views on the recent crypto market downturn. Meanwhile, under his administration, the commission has issued 23 proposed rules. However, they have not been approved yet.
Investors should get full disclosure
In an interview with Yahoo Finance, Gary Gensler answered a vital question about applying the rules around the equity disclosure regime in the crypto market. The SEC Chief highlighted that there is a difference between asset backed securities and an equity offering. So, there may be some differences here, and the investors should get full and fair disclosure.
He added that the public should have basic protection whether they are buying a cryptocurrency, a security, or asset-backed security. Meanwhile, Gensler mentioned that In America, the SEC lets investors take risks. However, it should be the duty of an individual to give out all the information before raising money or selling any financial assets in public.
SEC’s these major comments have come out at a time when platforms and companies applied for insolvency recently. While some platforms also halted their withdrawals. In these cases, investors didn’t even know whether their funds were insured or not.
Bitcoin is not a security, says SEC chief
People lost lots of money as some protection that applies to the traditional market didn’t apply in the digital asset market. Gensler believes that this is because there are non-compliant platforms and tokens. However, he added that he cannot prejudge anyone. As the authority has robust rules and regulations.
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SEC Chair mentioned that Commodity Futures Trading Commission (CFTC) also have the ability to write rules and use them. Meanwhile, he believes that investors are not protected largely because of non compliance in this space.
He also stated that Bitcoin is not a security as it was not issued by anyone.
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