SEC Chairman Gary Gensler discussed the regulation of cryptocurrencies during his remarks at the U.S. Treasury Department’s Financial Stability Oversight Council (FSOC) on Friday. Gensler stated that there is nothing incompatible with securities laws in the crypto market, but that the risks from this volatile and largely non-compliant market put investors at risk.
He emphasized the importance of bringing intermediaries and issuers of crypto securities tokens into compliance. Gensler also acknowledged that while the risks from the crypto market have not yet spread to the traditional financial sector, it is important to remain vigilant in order to prevent that possibility.
The SEC and Gensler have received criticism for their failure to prevent the collapse of crypto exchange FTX, which was charged with fraud by the SEC after the arrest of its CEO, Sam Bankman-Fried, in the Bahamas.