In the context of the great shock in the encryption market, the securities and Exchange Commission (SEC) issued a warning to investors about cryptocurrency Gary Gensler, chairman of the US Securities and Exchange Commission, said at the recent meeting of the US financial industry regulatory authority (FINRA) that cryptocurrency is a "highly speculative asset" and should be regulated as securities, and reiterated the issue of investor protection.
Gensler said cryptocurrency investors had not been fully and fairly disclosed, according to Yahoo Finance. He pointed out that investors should not think they "own" the cryptocurrency, because using the digital wallet on the cryptocurrency platform will transfer the ownership of the cryptocurrency to the platform.
"If the encryption platform thunders, guess what? You have to oppose the platform, and then line up slowly in the bankruptcy court." Gensler said.
Gensler said that encrypted assets are not so decentralized. At present, a few major trading and lending venues can handle the trading volume of most encrypted assets. Gensler called for basic protection of investors, including market integrity, prohibition of preemptive trading, anti market manipulation and anti fraud.
Gensler also said that encryption platforms often trade and make market for investors.
"When the crypto platform takes over your tokens, the platform can use and trade them. Unlike you trading on the stock market, the crypto platform is actually creating a market that is not conducive to investors." Gensler said.
Last week, terrausd (UST), the world's third-largest stable currency, collapsed miserably, stirring up the whole currency circle, which once led to the collective collapse of cryptocurrency.
Gensler also pointed out the reasons for supervising the stable currency. He pointed out that the stable currency is generally traded through other cryptocurrencies and is actually owned by the encryption platform. Individual investors have no right to redeem the two largest stable currencies (usdt and usdc) directly.
Gensler has always advocated the regulation of cryptocurrency and has repeatedly tried to define the category of cryptocurrency as securities to confirm the regulatory power of the sec. However, the SEC did not issue specific regulations on the supervision of cryptocurrency, but encouraged the cryptocurrency trading platform to voluntarily sign a contract with the SEC or take law enforcement actions against cryptocurrency players who do not comply with the securities law.