Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), has suggested that cryptocurrency exchanges and lending platforms should voluntarily cooperate with the agency under current securities laws. In an interview with Bloomberg, Gensler said the SEC is trying to seek investor protection. He explained that additional enforcement actions would be taken if needed. However, Gensler went on to say that there may be more room for some form of self-regulation or voluntary exchanges to make their willingness to comply known to the SEC. Gensler stated the following.

“It would be better to have these platforms work with us and comply with the securities laws.”

The laws affecting the financial community were enacted in the 1930s. As a result, many members of the cryptocurrency community believe these laws are ill-suited to the advanced modern technological advances of cryptocurrencies. Gensler rejects this view, saying.

“I think the law is very clear that [zoals ze werden]” was drafted in the 1930s. We have the ability to work with these exchanges with the help of various authorities to essentially customize some of them.”

He added that cryptocurrency exchanges and lending platforms operate differently than the traditional New York Stock Exchange. Gensler highlighted the SEC's position on cryptocurrencies, claiming that many of the tokens traded on exchanges have the characteristics of securities. He said.

“They raise money from the public and the public expects profits based on the efforts of others. […] What it comes down to is: are you raising money from the public and expecting profits based on the efforts of others?”

However, he acknowledges that some tokens may qualify as commodity tokens. However, tokens classified as commodities would not be entirely outside the jurisdiction of the SEC. He noted.

“We’re going to be working with the Commodity Futures Trading Commission, where some of those [munten] are those commodity tokens. Because while many of them are securities, some may fall under their purview, we’re working together as two federal agencies,” he said.