Nothing about cryptocurrency markets is incompatible with securities laws, SEC Chair Gary Gensler said at a House oversight hearing while defending efforts to regulate the sector, reiterating that "the vast majority of cryptos are securities". "Right now, this market is rife with noncompliance," Gensler said in his testimony before the House of Representatives Committee on Financial Services. "This not only puts investors at risk, but also puts at risk the public's trust in our capital markets." The SEC is currently taking public comments on its proposed rule for regulating cryptos, which was reopened last week to include the requirement of registering crypto exchanges and DeFi platforms. "Calling yourself a DeFi platform is not an excuse to defy securities laws," said Gensler in his testimony . Prior to the hearing, Republicans on the committee - led by Chairman Patrick McHenry (R-NC) - sent a letter to Gensler, in which they slammed the SEC's approach to regulating cryptos and its insistence on crypto exchanges registering under the "ill-fitting" national securities exchange framework. "You have been outspoken in your push for digital asset trading platforms to 'come in and register' under the NSE framework," the letter read. "Yet, at the same time, you failed to provide a path that allows these platforms to register." The representatives insisted that the SEC was to blame for the lack of registrants. "The SEC should take this opportunity to work with Congress to ensure investors have the regulatory clarity and protections they deserve." More on Crypto Clampdown Coinbase may consider relocating outside U.S., CEO says SEC charges Bittrex for operating unregistered securities exchange Binance: Could CFTC Lead To Bigger Problems? Coinbase: All's Not Well(s)
