Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), reiterated the need for regulations on cryptocurrencies and SPAC at the recent conference held in the US on Monday.
He noted that the US crypto market and related platforms would not thrive without regulatory oversight as they do today. He expressed his concerns that ‘people will be hurt’ if the market continues to operate without sufficient stringent regulations.
Gensler has frequently called upon the need to lay down regulations in the crypto space. He has spoken at length about crypto exchanges, stablecoins, and Decentralized Finance in recent interviews.
According to the official SEC website, the chairman made those remarks at the Q&A session at Vox Media’s Code Conference 2021 in Beverly Hills, California. The event talked about, but was not limited to, cryptocurrencies, IPOs (initial public offerings), and violations of Google and Facebook’s antitrust laws.
In the interview with former federal prosecutor Preet Bharara, he stressed the role of the SEC in ‘investor protection’, especially as cryptocurrencies have become a $2 trillion market. He remarked:
“This is not going to end well if it stays outside of the regulatory space. To think that a field that’s grown 10-fold in the last 18 months—not just in terms of asset value, but in the underlying lending and much more—that it’s going to stay outside of these public policy frameworks and succeed… We’ll end up with a problem and a lot of people will be hurt.”