Where SEC Chief Gary Gensler Stands On Crypto Regulation

The U.S. Securities and Exchange Commission recently said it plans to regulate cryptocurrencies to protect investors against fraud. 

Cryptocurrency is a speculative asset class in need of regulation, SEC Chairman Gary Gensler said Wednesday on CNBC's "Squawk Box."

Bitcoin BTC/USD, Ethereum ETH/USD and the hundreds of other coins need to be regulated in order to protect investors from manipulation, Gensler told CNBC. 

Investors need to understand that they are not protected in the same way that they are when they invest in a security on the New York Stock Exchange, he said, adding that this is not good for the advancement of cryptocurrency technology. 

Gensler told CNBC that he is encouraging the trading platforms to come talk to the SEC about regulation, however, many of them do not want to get involved.

The SEC plans to work with Congress "to fill gaps in the authorities," he added. 

Gensler noted that he is pro-innovation, but said there also needs to be rules put in place. 

See Also: CryptoPunks Have Outperformed Bitcoin And Ethereum In 2021

BTC, ETH Price Action: At last check Wednesday, Bitcoin was up 2.66% at $39,127 and Ethereum was up 6.13% at $2,639.99.

Photo by Pete Linforth from Pixabay.