Moreover, Gensler highlighted a potential conflict of interest. He suggested that crypto platforms might be trading against their customers. According to Gensler, this behavior would be unacceptable on regulated exchanges.
The SEC Chair emphasized the need for regulatory oversight. He believes crypto exchanges should adhere to the same standards as traditional financial markets. Without proper regulation, investors remain at risk.
Gensler's comments come amid increasing calls for tighter crypto regulation. The SEC continues to investigate and address these concerns. As the crypto market grows, ensuring investor protection remains a top priority for regulators.
At the same time, many ordinary users still thinks that investor protection is in fact a kind of surveillance. There is a common narrative among experienced crypto users, which states that KYC and other security practices are limiting the users' right for privacy. There is a growing trend for no KYC exchange popularity. And there is a reason for that.
Gensler's critique of crypto exchanges highlights significant regulatory gaps. His stance is clear: these platforms must be held accountable. Yet, SEC is telling just one side of the story. And the tighter measures will be taken for investor protection, the more critics will fiercely attack Gensler's position.
Alexey Bondarev is the Head of Content at Yellow.com, having reported on crypto for the last 10 years. He specializes in in-depth Research and Learn pieces, with a focus on analytical reporting, industry context, and the bigger forces shaping crypto, from the AI era and security technologies to fintech innovation. He believes that everything digital will imminently overcome everything analogue and is working hard to make that come true.
