Prepared Remarks of Gary Gensler, Chair of the Securities and Exchange Commission, Before the American Bar Association Derivatives and Futures Law Committee Virtual Mid-Year Program
Looks like the SEC will be stepping up enforcement regarding crypto trading. I have found it interesting to see how on many of the social sites, those touting and pushing returns and recommendations.
Gary Gensler, Chair of the SEC, regarding crypto:
“Before I conclude, I’d briefly like to discuss the intersection of security-based swaps and financial technology, including with respect to crypto assets. There are initiatives by a number of platforms to offer crypto tokens or other products that are priced off of the value of securities and operate like derivatives.
Make no mistake: It doesn’t matter whether it’s a stock token, a stable value token backed by securities, or any other virtual product that provides synthetic exposure to underlying securities. These platforms — whether in the decentralized or centralized finance space — are implicated by the securities laws and must work within our securities regime.
If these products are security-based swaps, the other rules I’ve mentioned earlier, such as the trade reporting rules, will apply to them. Then, any offer or sale to retail participants must be registered under the Securities Act of 1933 and effected on a national securities exchange.”
Marketwatch reported in May 26, 2021:
“We have the SEC trying to protect against fraud in manipulation [in traditional stock exchanges,]” Gensler said. “Not so in the crypto world, and so it’s trying to bring the similar protections to the exchanges where you trade crypto assets, as you might expect on the New York Stock Exchange or Nasdaq.”
Gensler also noted the SEC’s cooperation with the Commodity Futures Trading Commission and the U.S. Treasury to combat criminal activity facilitated by cryptocurrencies. “They’re keely [sic] focused on anti-money laundering and guarding against illicit activity,” he said, adding that he wants to “augment and support their efforts.” The chairman also suggested that he would like to work with Congress to pass legislation that would enhance investor protection in the crypto space.