Cryptocurrencies in the sec's crosshairs: "High-risk tokens"

The aim is to create a register of trading platforms to regulate the sector. President Gensler: "They must be subject to the same rules as securities" 22 Jul 2022 L. O.

Cryptocurrencies still in the crosshairs of the US Securities and Exchange Commission. According to SEC Chairman Gary Gensler, the authority is hard at work getting cryptocurrency companies operating as investment firms properly registered. It is up to large financial institutions, according to the SEC, to decide whether to include "crypto options" in their portfolios. But the risks associated with crypto tokens will have to be made public. Index of topics • Cryptocurrencies or "normal" investments? • The volatillity of the sector Cryptocurrencies or "normal" investments? "We focused on this area because many of these companies could very well be investment firms that get hundreds of thousands or millions of client funds, put them together and then put them back into circulation offering high returns. Which sounds like a normal investment in a company, or a bank." Now it is necessary for the SEC to work in concert with the industry "to get these companies to be properly registered under securities laws." The volatillity of the sector The focus on the cryptocurrency markets has intensified since May due to waves of "volatility" that has alarmed watchdogs and seen the collapse of cryptocurrency prices. Celsius Networks, for example, has declared bankruptcy. Companies exposed to cryptocurrencies have previously warned that lower token prices could have knock-on effects, including triggering margin calls. Meanwhile, as the US Federal Reserve began raising rates to fight inflation, investors fled the cryptocurrency markets. According to Gensler , some cryptocurrency trading platforms could meet the definition of "securities" and should be traded and regulated as such.