SEC Commissioners Continue Debate On Regulating Crypto

At a meeting of the Investor Advisory Committee, SEC Chair Gary Gensler and SEC Commissioner Hester Peirce continued their debate on the SEC's approach to crypto regulation.

In his remarks, Mr. Gensler reported that the crypto asset class has a $2.6 trillion aggregate market capitalization, making it necessary that this asset class be subject to public policy frameworks that protect investors and financial stability and prevent illicit activity. Mr. Gensler also warned that the lack of investor protections, including through disclosure requirements, is a particular regulatory concern because the crypto asset class is "rife with fraud, scams, and abuse in certain applications." Mr. Gensler maintained that it is extremely unlikely that any given platform does not offer securities. Mr. Gensler asserted that platforms offering securities fall under the SEC's jurisdiction. As such, he urged crypto platform operators and token issuers to engage with the SEC to address