The SEC Says It Treats Crypto Like the Rest of the Capital Markets

Gary Gensler, the chair of SEC, writes in an op-ed: We can dispense with the idea that crypto lending isn't subject to regulation. On the contrary, the rules have been around for decades. The platforms aren't following them. Noncompliance isn't the inevitable result of the crypto business model or underlying crypto technology. Rather, it is as if these platforms are saying they have a choice -- or even worse, saying "Catch us if you can." As I said in a speech last year, "Make no mistake: If a lending platform is offering securities, it ... falls into SEC jurisdiction." On many occasions, the commission and state regulators have addressed how the relevant case law implicates crypto assets, including crypto lending. There are costs of complying with securities laws, just as there are costs to car makers of adding seat belts. Platforms that offer crypto lending need to comply anyway, not merely because that's the law, but also because it helps protect investors and increase trust in our markets. Fortunately, there is a path forward. I encourage platforms offering crypto lending to come in and talk to SEC staff. Getting these platforms into compliance with the securities laws will benefit investors and the crypto market. In the meantime, the SEC will serve as the cop on the beat. As with seat belts in cars, we need to ensure that investor protections come standard in the crypto market.

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