The Case for Regulating Crypto ‘Exchanges’ Sooner Rather Than Later
In May, new SEC Chairman Gary Gensler strongly suggested that it be Congress to take up the cause of regulating cryptocurrency exchanges selling alt-currency to investors. Noting that “there is no [SEC] authority to register and write rules to protect the investing public” when it comes to the two trillion dollar market, Gensler concurrently highlighted the potential dangers posed by unregulated Internet marketplaces for Bitcoin and its imitators.
Such prioritization among the varied questions concerning cyberspace investments indicates that the Chair feels that both the SEC’s existing provisions and authority are powerless to rein in sellers. However, given that the name “exchange” is already being used quite publicly by trading platforms (and Congress is not likely to act on this confusion any time soon), this article suggests a trio of immediate solutions to the recently professed SEC jurisdictional problem.