WASHINGTON, Nov 9 (Reuters) – The turmoil that has rocked the cryptocurrency industry in recent days underscores the inherent risks in the industry as intermediaries handle many critical functions, the chief principal said on Wednesday. US market regulator.
Securities and Exchange Commission (SEC) Chairman Gary Gensler has used the events of the past few days – centered on concerns over the financial health of leading cryptocurrency exchange FTX – to highlight the risks of a crypto that operates outside of traditional financial markets. surveillance.
“I’ve been saying this in this job for over a year: get in, sign up, obey securities laws,” Gensler said at a Healthy Markets Association event.
Gensler noted the risks of “mixing” key middleman functions in the cryptocurrency world, where the same companies perform multiple roles, such as exchanges and market makers.
Cryptocurrencies have historically fallen into regulatory gray areas. The SEC, which investigates FTX’s handling of client funds, has stepped up scrutiny of the crypto industry under Democratic leadership.
Reporting by Chris Prentice; Editing by Chris Reese and Jonathan Oatis
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