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According to SEC Chairman Gary Gensler, the authority spends just $325 million per year on technology, which is less than some industry companies spend in two weeks.
The Securities and Exchange Commission of the United States is aiming to collaborate with Congress and other agencies to expand its control of cryptocurrency exchanges.
The SEC’s newly appointed chairman, Gary Gensler, stated that the commission is looking forward to working with other agencies and Congress to fix holes in investor safety in cryptocurrency markets.
The official announced the plans at a Wednesday hearing before the Financial Services and General Government subcommittee of the House of Representatives.
According to Gensler, the SEC should give crypto exchanges with the same safeguards that an investor would receive on the New York Stock Exchange or Nasdaq:
“If you placed an order on an app, and you said, ‘Alright, I want to buy a stock,’ there are rules that protect you that somebody won’t use your order and get ahead of you. […] So, it’s trying to bring the similar protections to the exchanges where you trade crypto assets as you might expect at the New York Stock Exchange or Nasdaq.”
The incoming SEC chairman also discussed some of the difficulties in regulating the cryptocurrency business, claiming that the SEC is “under-resourced” financially in comparison to some of the sector’s major participants. “We only spend about 16 percent or 17 percent of our budget, or about $325 million per year, on technology, which is less than some large firms probably spend in a month. Some of them even spend that much in two weeks,” he observed.
Gensler previously suggested that the SEC should be cooperating with Congress to properly address crypto exchange regulation in a market volatility-related hearing of the House Financial Services Committee in early May.
Michael Hsu, the new director of the Office of the Comptroller of the Currency, stated last week that the agency has been in discussions with the US Federal Reserve and the Federal Deposit Insurance Corporation about forming a “interagency policy sprint team” focused only on cryptocurrency.