On Tuesday, May 24th, the United States Securities and Exchange Commission Chair shared his views on cryptocurrencies via Twitter. In a two-minute video, Gary Gensler emphasized that while crypto and blockchain are great innovations, investors need to be protected.
According to Gary, it would be unwise to risk undermining 90 years of securities laws to create some regulatory arbitrage or loopholes.
While the date in the video revealed that it had been created more than a month ago, the former investment banker believes the advice for investors is still beneficial.
“We Should be Technology Neutral, But Not Policy Neutral”
The SEC chair believes investors and regulatory authorities should not treat the crypto market differently simply because it’s based on blockchain technology. He further urged investors to be technology-neutral but not policy-neutral.
Gary Gensler admitted that new technologies always evolve, but investors and regulatory authorities should be willing to adjust to these new technologies. With the high risk associated with investing in cryptocurrencies, the ecosystem has drawn more attention from the authorities.
Like Gary, many individuals in the ecosystem believe that more regulatory frameworks should be put in place to protect investors.
Following the huge crash in the prices of crypto assets earlier this month, investors have collectively lost billions of dollars. A major crypto protocol that has been called into question is the Terra protocol. Its native token lost more than 99% of its value in no time. Investors have called for regulatory authorities to investigate the LUNA crash, but there’s no positive news for investors yet.
While Gary made no reference to LUNA or Terra in the video dialogue, he emphasized that unregulated crypto projects can hurt investors badly. Additionally, terrible losses can make entrepreneurs lose their trust in the crypto market.
Blockchain and cryptocurrencies have been tipped to form a huge part of our technological future. If these projections are to play out, more regulations will likely be put in place to protect users of blockchain and cryptocurrencies.
