- Gary Gensler Questions Crypto Asset Markets
- Traditional Securities and Crypto Assets must be treated equally
- Will the treatment make a change in the crypto market conditions?
The Perfectly Wired Crypto Market
With millions of crypto community investors spread unevenly across the globe, the market automatically turns humongous. Especially when there are no defined rules, buyers and sellers are free to make their transaction in whatever way possible. This gives investors a slight window to manipulate the market terms which may further affect the market valuation or business foregrounds.
The crypto market may stand a little different from the stock market but the basic fundamentals are still the same. But what makes the crypto market different is the ‘ freedom to deal’. Crypto market usually allows buyers and sellers to operate on decentralized platforms which gives them freedom to make different price proposals according to the need.
Crypto Market or the Traditional Securities Format
However, it’s somehow important that there must be market regulations to generate uniformity throughout. Gary Gensler – Chairperson at Securities and Exchange Commision (SEC) clearly states that crypto markets are no different from the stock markets and hence must be treated as traditional securities. Think of it in a way when the crypto market will have the same consumer protection rule book as in the usual US stock market.
Further Gay said in a interview, “With so many retail customers trading on crypto platforms, we should make sure those platforms offer similar protections. So I’ve asked our staff to work directly with the platforms to get them registered and regulation to ensure that those crypto tokens come in as well and register where appropriate as a security.”
His point was a clear indication to segregate the market-moving factors of the crypto platforms. Adding to his points Gary clarified that there is no reason as of now that the crypto currency exchanges and the crypto currencies must be treated differently than others.
It may be a possibility that if crypto markets are put under certain regulations, it may act as a barrier to market threats including cyber threats. There are certain rules in the crypto markets safeguarding the market integrity and protecting the investors from frauds happening now and then. Imagine a crypto market platform that works on a motif to protect the customers and meet the market regulations. Will customers not feel safer and confident enough to step into crypto markets? Who knows this may be the game-changer to end the deadly CryptoWinters.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.