The U.S. Securities and Exchange Commission is getting serious about regulating cryptocurrency exchanges
U.S. Securities and Exchange Commission Chair Gary Gensler is considering possible approaches to regulating cryptocurrency trading platforms, The Wall Street Journal reports.
The SEC will work together with the Commodity Futures Trading Commission in order to rein in crypto trading platforms that allow their users to trade both commodities and securities, as per the report.
Gensler argues that cryptocurrency exchanges function similarly to traditional exchanges, which is why they have to face the same level of scrutiny.
Hence, the SEC is focused on extending investor protections to crypto trading platforms.
Gensler has also noted that crypto exchanges take custody of their customers’ assets. Hence, he proposed to separate custody from trading to make it safer to store digital assets on exchanges.
As reported by U.Today, Gensler has repeatedly asked Congress to help the SEC to regulate cryptocurrency exchanges.