Cryptocurrency has become increasingly popular over the recent years and remains to this day a beneficial choice for investing and trading, but with great power comes great responsibility. Regulations have been enforced in order to ensure that this cryptocurrency market remains a safe and reliable environment for all. In the US, the Security Exchanges Commission (SEC) is the authority that works to protect investors and maintain efficiency in the cryptocurrency market.

On January 22nd 2021, Gary Gensler was sworn in as the Chairman of the SEC, becoming the first person with an in-depth knowledge of the blockchain technologies underlying cryptocurrencies to lead the SEC in its history. Gensler is a former Goldman Sachs banker and professor of blockchain technology at the Massachusetts Institute of Technology.

His approach towards cryptocurrency and the blockchain technology is set to bring about positive advancements in the field since he is a known advocate for blockchain. Already, he has put forth initiatives to protect investors from fraudulent activities, wallet companies who are handling users’ Bitcoin, and other crypto-assets, as well as to make sure that the crypto exchanges are doing their job properly.

Furthermore, as part of his mission, Gensler is looking furiously into how Initial Coin Offerings (ICOs) are being used wrongly and how smaller investors are being misled by seemingly non-accredited issuances.

It is expected that Gensler’s plans will include regulations that will benefit both investors and traders in the long-term while encouraging growth in the market. He is creating a national standard with his plans, which include security trading rules, market manipulation, and investor protection.

The remarkable changes and advancements in the cryptocurrency market expressed by Gensler have made people optimistic and hopeful of the future of cryptocurrency overall. A safe and regulated environment for traders and investors is becoming noticeable with his works, and many people feel more confident about investing in the cryptocurrency due to the regulations and guidelines he is setting to protect them from financial exposure.

Gensler's promise to protect investors from market manipulation and fraudulent activities are necessary steps that must be taken if this young but powerful cryptocurrency market is to flourish in the future. It is to be expected that the Federal Reserve and other regulatory bodies will take the lead in cooperating with Gensler and that together, they will successfully create well-functioning policies that will benefit the industry in the long run.



Other News from Today