Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), rejected the idea that cryptocurrency platforms can act as qualified and secure custodians for investment advisors. During his speech at the meeting of the Advisory Committee of Investors, the official noted that the proposed rule prescribing investment consultants to contact qualified custodians makes important improvements to the concept of consumer protection. However, cryptocurrency platforms cannot be considered safe in accordance with these rules.
Gensler stated, “Based on how crypto platforms work, investment advisors cannot fully rely on them as qualified custodians. And if the exchange claims that it is, then this is not always the case.” The SEC chairman also recalled the series of high-profile bankruptcies that swept through the crypto industry last year.
According to him, investors have lost billions of dollars against this background. And this once again underlines that the security of institutional and retail consumers for US regulators should remain a key priority.
Earlier edition Crypto.ru She informed readers that Gary Gensler may speak at congressional hearings, which will be held tentatively as early as March 9, 2023.
It is noteworthy that the cryptocurrency community actively criticizes the actions of the official himself and the department controlled by him.
According to many experts, the SEC’s attacks on various exchanges are repressive and in many ways destructive for the entire segment of digital assets. As for the position of Gensler himself regarding cryptocurrencies, in his opinion, all coins, except bitcoin, should be considered as securities.