Tuesday 03 August 2021 9:51 am | Updated: Tuesday 03 August 2021 12:05 pm

SEC chief vows to crackdown on cryptocurrencies

In reference to computer games, there is a concept of the ‘final boss’ in crypto folklore. For crypto, the ‘final boss’ is the government. The SEC’s decision to issue subpoenas to crypto companies are an attempt by the agency to classify Ethereum as a security and therefore put it under its jurisdiction. SEC Head Gary Gensler may well see this as the final chance to keep the ‘genie’ of decentralised finance in the bottle by severely increasing the regulatory risk for crypto projects.

The new chief of the US’ financial markets watchdog has vowed to crackdown on cryptocurrencies as soon as possible.

Speaking to Bloomberg, Gary Gensler, commissioner of the US Securities and Exchange Commission, said that he has instructed “staff to use all of our authorities anywhere we can” to improve oversight of crypto assets.

Gensler disclosed that there is at least seven SEC initiatives looking at various crypto issues, namely initial coin offerings, trading venues and lending platforms.

The new SEC boss wants to sharpen regulatory oversight of digital assets to strengthen investor protection.

Gensler said: “While I’m neutral on the technology, even intrigued—I spent three years teaching it, leaning into it—I’m not neutral about investor protection.”

“It’s only with bringing things inside—and sort of clearly within our public policy goals—that a technology has a chance of broader adoption,” he added.