SEC chief Gary Gensler has more views on cryptocurrency in 2021.

The head of the U.S. Securities and Exchange Commission (SEC) argued that more cryptocurrency oversight is needed.

Gary Gensler has a lot to say to Wall Street and crypto practitioners.

Gary Gensler rocked Wall Street and the crypto industry during his brief stint with the United States Securities and Exchange Commission.

Most of the work he did before his organization was administered or regulated was done on his own terms.

He spoke at length about the need to tighten controls on Wall Street, cryptocurrencies and Chinese companies that interfere with the economy and create an impact on the industry.

Elected chairman of the US Securities and Exchange Commission (SEC) last April, Gensler, a Wall Street ally, is a partner of Goldman Sachs. He also taught the cryptocurrency course at MIT and has a background in cryptocurrency. This has led some to expect him to show some sympathy, or at least no hatred, for the cryptocurrency market.

Based on his experience running the CFTC, he helped resolve the credit crunch after the 2008 financial crisis, and is expected to strengthen Wall Street's regulatory framework in the aftermath of the Trump era. Once recognized, executives and politicians watched the Robinhood and Meme Stock frenzy that crossed Wall Street in January. Cryptocurrencies are scarce in the Washington process.

The cryptocurrency industry wants to know the regulators, and Gensler said he knows the market very well. Then Gensler started talking, and here are some of his highlights from this year:

"Internal" conflicts

At the House Assistance Committee meeting in early May, Gensler played his first major role in Congress as chairman of the SEC. He clarified that the merchants who pay for the order, that is, those who pay the retailer to complete the order, will be subject to review by the SEC.

He pointed out that the payment of flow decisions can be a kind of "conflict of interest" and that this conflict is "personal" to the organization. Referring to the fact that Robinhood agreed with the SEC in December 2020, Gensler said, it was possible to determine how much Robinhood could benefit from its spreading business and how much that will change for investors.

Gensler has also made it clear that he is not happy with the current regulatory environment for cryptocurrency.

Chinese research

In July, Gensler warned of the risks of Chinese companies to the American public. It focuses on the differences in income or LIFE. Gensler is working to better understand Chinese company investors because Chinese companies do not publish the same information or have the same audits as US companies. Under pressure from US and Chinese regulators, Didi was delisted from the New York Stock Exchange in December.

"Or Far West"

On August 3, Gensler addressed cryptocurrencies in a speech at the Aspen Security Forum. "There isn't enough protection for investors in terms of crypto now. To be honest, we are now nearing the Western Era."

"This heritage is subject to fraud, fraud and abuse in certain forms," ​​he said. "There is a lot of hype and bubbles about how crypto assets work. In many cases, investors cannot get complete, rigorous and fair data."

Two days later, in a letter to Elizabeth Warren, Gensler called for legislation to deal with the cryptocurrency, loan, and capital markets. It's about identifying some things Gensler himself couldn't do in the SEC without federal law. This may be one of the reasons he has spoken to the public about cryptocurrency but has yet to take concrete action.

“I think the law should focus on cryptocurrency, lending and DeFi platforms,” he wrote. "Administrators will benefit from new rulings to promulgate regulations and tie guardrails to the cryptocurrency and lending sectors."

Note: Gary Gensler is not your father.

In September, Gensler told the Senate Treasury Committee that it would not decide the SEC on coin handling "because securities are likely to be safe." He stood up and didn't say it was really safe, but said the SEC might or at least need to hold the coin steady. Then, in November, the board called for a watchdog similar to the token bank connected to fiat money.

He also opposed criticism from executives that the United States Securities and Exchange Commission did not know whether crypto tokens were safe or not. “I think there are a few examples over the last few years that can prove it. I think the purpose of our security law is to protect investors from fraud. They can make decisions. They can be risky. . I'm not good with cryptocurrencies. Set by Congress. "

In one of the hearing's most memorable conversations, a senator asked him about his organization's perspective on the spread of risk aversion. Senator John Kennedy asked, “As Chairman of the United States Securities and Exchange Commission (SEC), you care about people and business. Do you see yourself as their father?

"Nun." it Gensler.

"So why are you behaving like this?" Kennedy responded. “Why do you force your personal preferences on corporate culture and relationships ... I think I have a personal opinion on abortion. Are you ready to adopt? to use or apply these benefits to your business?

“Lord, I don't think I did,” Gensler replied. “What I've always wanted to do is that if the trader needs information about climate security, the SEC has a responsibility to provide information, provide feedback, conduct audits and see clearly what investors are saying. "

impassive face

In late September, Gensler compared cryptocurrencies to "poker chips" at an event in the Washington Post. He further underlined that congressional assistance would facilitate monitoring. However, he said the SEC already has enough headroom to regulate cryptocurrencies. “But when it comes to the US Securities and Exchange Commission, I think we have a strong position, but there are still some differences that I identified.”

At the same time, some key figures in the cryptocurrency industry have started to respond to Gensler's criticisms. Their reaction is usually to hold someone other than Gensler responsible. As Andreessen Horowitz said, "It's time to get better at the United States Securities and Exchange Commission," Coinbase directly criticized Coinbase, calling for a new regulator to oversee cryptocurrencies. Coinbase complains about the SEC's refusal to approve Coinbase loan products.

demarcated area

At the November security conference, Gensler used sport as an example. “Think football without a referee. The team starts breaking the rules without worrying about penalties. This game is unfair. Min, it's not fun. Look no further.” He continues to defend the role of the United States Securities and Exchange Commission to protect investors.

It appears to have responded to a certain deal from the crypto industry, the SEC region pointed out. Although many regulators oversee the cryptocurrency market, such as the Treasury Department and the Future Commodity Exchange, Gensler has made it clear that he will not relinquish his role in the SEC.

And it has protected the US Securities and Exchange Commission (SEC) from the control of certain border guards. “Some trading partners may call it regulatory policy,” he said. “I just called the police.

cleaning of the third corridor

In December, Gensler said he needed better care rather than post-traumatic stress disorder. At the DACOM conference, Gensler said, “We want to eliminate the third way (in terms of the cryptocurrency market, we are doing well on the part of lawyers and taxpayers to avoid problems). The event was published in the Wall Street Journal that month. “Event Uses Neutral Voice: Cryptocurrency Trading” requires attendance, attendance, and registration with the United States Securities and Exchange Commission. "Cryptocurrency companies that hold consumer tokens and full orders have become the focus of Gensler's legal program for 2021, making it a goal to monitor the organization by the chairman of the SEC."