U.S. Securities and Exchange Commission (SEC) nominee Gary Gensler has made his position on cryptocurrencies clear—Congress must intervene and create a regulatory framework.

On Tuesday, during his nomination hearing in front of members of the U.S. Senate Banking Committee, Gensler discussed his views on crypto regulation. He stated that the commission should take an active role in protecting investors and promote market integrity.

Gensler said that Congress has the authority to "clarify the SEC's power to regulate cryptocurrency and other digital asset markets." He added that this is the only way to ensure that there are rules and regulations "that protect investors and promote market integrity" in the world of digital asset trading.

In addition to calling for Congress to step in, Gensler believes that the Commission should also provide guidance to the market:

  • The SEC should provide guidance on what digital asset activities are subject to its regulations.
  • The SEC should take a proactive role in policing fraudulent activity in digital asset markets.
  • The SEC should set forth rules for how digital asset platforms should operate, including custody and trading practices.

Gensler's Experience

Gensler is an experienced regulator, having served as the chair of the Commodity Futures Trading Commission under the Obama Administration. He was also a professor at the MIT Sloan School of Management, where he taught classes on cryptocurrency regulation.

This experience gives him a unique perspective on the need for Congress to act and the SEC to provide guidance. He understands the importance of creating a robust regulatory framework that protects investors and promotes market integrity.

Conclusion

Gensler has made his position on cryptocurrency regulation clear—Congress must intervene and create a regulatory framework to protect investors and promote market integrity. His experience as a regulator and professor provides further evidence for the need for such measures. It is now up to Congress to take action.