By Richard Hines
Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), has stated that the SEC only needs additional funding and international reach in light of the Congress decision on crypto rules.
SEC Requires More Tools For Effectiveness
According to Gary Gensler, the SEC is no longer waiting for Congress to pass legislation restricting the securities and cryptocurrency businesses.
When it comes to regulating the cryptocurrency industry, he adds that the SEC would require more funding and a wider international reach in order to properly carry out its obligations.
Occasionally, Gensler had resisted discussing FTX chairman Sam Bankman Fried in relation to the FTX exchange turmoil.
However, he claimed in an interview that there are already certain fundamental conditions for holding virtual assets accountable.
Additionally, he avoided discussing or responding to the subject of whether his agency would design and implement additional crypto laws in 2023.
Gensler, though, stated that it is still too early to say whether or not the cryptocurrency industry needs new restrictions.
The laws are already in place, according to Gensler. The challenge is more in enforcing it and penalizing companies and exchanges that do not comply.
Issues Of Misappropriating Users’ Funds
Lessons on the hazards and disadvantages of not spelling out clear directives and principles separating customers’ funds from investment funds were learned as a result of the chaotic crash of FTX.
This was a problem for the FTX because their sister exchange, Alameda Research, had misappropriated or misused user funds by using investors’ money to develop its exchange.
However, several exchanges continue to run their convoluted platform since they do not see anything wrong with it, declaring that they would keep performing various tasks, including lending and selling.
Gensler and the SEC, however, argued that this was unacceptable and that funds for investors must be kept separate so that they are not used for investment reasons.
Although Gensler has been building his team for some time, the company hasn’t cornered or made a big catch against any cryptocurrency firm.
This is supported by the case between Ripple and the SEC, which has dragged on for two years and has both parties’ expectations of winning decreasing.
However, a single ruling regarding this case is expected to be made soon.
Nevertheless, whether or not new laws are made, Congress and the lawmakers are determined to make cryptocurrency a priority this year, with a potential for crypto legislation to be implemented in 2023.