SEC Chair Gensler Highlights Gaps In Crypto Regulation

In remarks before the Aspen National Security Forum, SEC Chair Gary Gensler highlighted gaps in the regulation of cryptocurrencies that raise AML concerns and put investors at risk.

Mr. Gensler outlined the following concerns arising from the lack of crypto investor protections:

• many crypto tokens are improperly unregistered securities, lacking mandatory disclosures and market oversight, putting their prices at risk for manipulation and ultimately leaving investors vulnerable;
• crypto trading platforms are likely to offer trading, improperly, in tokens that are securities; and
• the use of cryptocurrencies can facilitate bad actors' efforts to sidestep a number of public policy goals related to the traditional banking and financial systems, such as AML, tax compliance and sanctions.