- Gary Gensler revealed that cryptocurrency exchanges are the primary focus of the SEC in 2022.
- The additional scrutiny is key to protecting crypto traders and investors from cryptocurrency exchanges.
- Proponents argue regulations applicable to long-covered equities and bond trading should not apply to crypto exchanges.
US Financial watchdog, the Securities and Exchange Commission, has plans to crackdown on cryptocurrency exchanges in 2022. SEC Chair Gary Gensler revealed plans to tighten scrutiny of crypto exchanges.
SEC prepares for crypto exchange regulation this year
The US Financial watchdog, Securities & Exchange Commission, is set to crackdown on cryptocurrencies in 2022. Gary Gensler, the SEC chair, in a press conference on Wednesday said that he is prepared to increase scrutiny on cryptocurrency exchanges.
Gensler was quoted as saying:
I’ve asked staff to look at every way to get these platforms inside the investor protection remit. If the trading platforms don’t come into the regulated space, it’d be another year of the public being vulnerable.
Gensler hopes that cryptocurrency exchange platforms take the needed steps to regulate through financial regulators in Washington. Gensler expects additional scrutiny to offer investors and traders protection while trading assets on cryptocurrency exchanges.
The Securities & Exchange Commission is keen on regulating the trading of assets on cryptocurrency exchanges, arguing that most tokens are similar to securities. Proponents have criticized the SEC’s stance and believe that cryptocurrencies and their trade on exchanges should not be subjected to the same regulations as those covering equities and bonds.
Sam Bankman-Fried, the founder of FTX exchange, thinks that there will be higher regulatory clarity on cryptocurrencies in 2022. This year, regulators and financial institutions are more optimistic and likely to regulate crypto assets.
The SEC chair is keen on regulating cryptocurrency exchanges in 2022 to ensure safety for investors and their investments in crypto assets. Cryptocurrency exchanges may need to work with regulators to get their investor protection remit before the end of the year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.
Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon
Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?