Gary Gensler, the head of the SEC, was met with criticism concerning the agency’s stance on cryptocurrencies, particularly the recognition of Ethereum as a security, regulation of stablecoins, and the FTX situation at a US House of Representatives speech.
Gensler reiterated his remarks about the multitude of digital asset projects that break securities laws, adding that the Commission is in talks with the teams for token registration.
He stated that securities laws are tried and true, and it is a mistake to try to ignore them. Gensler further expressed his endorsement of the Financial Markets Working Group’s recommendations for stablecoins, on the condition that it does not diminish the worth of capital markets.
He also addressed the lack of proactive steps to prevent the collapse of FTX due to the practice of blending client funds with Alameda Research’s assets, and accounting issues.
Gensler responded that if these companies were registered, the Commission would be able to view their books and records.
