Gary Gensler, the head of the SEC, has stated during an AMA session of the Atlanta Fed that crypto markets are “generally inadequate” and based on a “false notion” of decentralization.
He has pointed out that crypto companies’ business models are typically “non-compliant with regulations,” citing the NYSE as an example of how the SEC would not allow them to act as market makers, hedge funds, or borrow their own tokens without publicly disclosing it.
Additionally, Gensler has highlighted the growing connection between digital assets and TradFi, which he believes could increase the possibility of “fires in the financial market.”
Calling into question the need to publish clear rules for industry participants in light of the SEC’s conflict with Coinbase, Gensler has concluded his remarks.
