The SEC chairman Gary Gensler has said at the annual conference of financial regulators in Washington that due to the speculative nature of cryptocurrencies, investors need more protection or they may lose confidence in the markets, Reuters has reported.
As a rule, cryptocurrencies buyers do not receive the amount of information that is typical for other asset classes. He has added that, for example, this concerns the trading platforms used or whether users actually own funds in their digital wallets. He has added:
“We have a fundamental deal: you, the investors, can make choices about acceptable risk, but disclosure is expected to be complete and honest. People shouldn’t lie to you.”
According to him, cryptocurrency markets are considered decentralized, but in reality, most of the activity takes place on a few large trading platforms. Along with token issuers, they should work with the SEC to improve industry regulations and inform consumers.