Gary Gensler, Chairman of the Securities and Exchange Commission, proposed to increase the budget for monitoring the crypto space.
According to Gensler, over the past six years, the crypto space has increased with digital tokens multiplied by more than ten times. Adding that cryptocurrency-related investors remain largely unprotected, citing the recent collapse of the TerraUSD stable coin.
Gensler referred to the collapse of the cryptocurrency when the TerraUSD (UST) stablecoin collapsed and bitcoin fell below the $ 30,000 level.
Distributing the SEC's current resources, Gensler announced that in his compliance department, consisting of 1,300 employees, just over 50 people are engaged in cryptography. And this is after adding 20 new members to the team.
He also said that the public is not protected. In new areas, tools from complex securities products to new financial technologies and cryptocurrencies require new tools and experience. Additional staff will provide the department with more opportunities to investigate misconduct and accelerate enforcement actions. It will also strengthen judicial support. Strengthen the capabilities of the Crypto Assets and Cyber Unit and investigate tens of thousands of tips, complaints, and recommendations.
Speaking about commodity-type digital tokens compared to securities, Gensler noted that Bitcoin is one of the few tokens that are probably commodity tokens. This means that they fall within the competence of the Commodity Futures Trading Commission.
However, most crypto tokens are considered securities and fall under the SEC. And crypto exchanges that process these tokens must be registered as a national exchange.Earlier this week, Gensler said that the crypto space is very speculative and investors should pay close attention to disclosure, token ownership, and much more, taking risks.
