The US Securities and Exchange Commission may tighten control over crypto projects

The chairman of the SEC, Gary Gensler, is concerned about the reluctance of cryptocurrency platforms to cooperate with regulators. The official hopes that in the near future companies will begin to build effective interaction with local authorities.

Gensler said that compliance with US laws by crypto projects means a lot to clients of such firms. And only thanks to the control of regulators over the platforms, their investors will be able to feel protected by analogy with the protection of the interests of security holders.

“I’ve asked the SEC staff to look at every way to get these platforms inside the investor protection. If the trading platforms don’t come into the regulated space, it’d be another year of the public being vulnerable,” Gensler said.

The head of FINRA, Robert Cook, said that the organization plans to consider a possible tightening of the conditions for the sale of digital currencies. The structure that controls the brokerage will focus on advertising services in the field of crypto assets and data disclosure.

FINRA will not make sweeping changes to the rules, but plans to issue notices. They will talk about the existing norms and how they should be developed for the high-quality protection of the interests of investors.

In the field of cryptocurrencies, FINRA is ready to consider additional criteria for situations related to the purchase of unregulated products, in particular digital assets.

“We’re not going to fundamentally change the current rules or regulatory structure — that’s what the SEC and other federal agencies are doing,” Cook said. “However, our partners are investing significant amounts in new cryptocurrencies with high volatility. The new rules will help us keep investors safe.”

What do you think of the regulators’ initiatives? How will this affect market participants in the future?