Gary Gensler urged regulators to prepare to initiate criminal cases

Gary Gensler continues to draw attention from the US authorities, calling for the protection of cryptocurrency investors and their interests. As part of the FINRA 2021 virtual conference, the head of the commission said that the financial regulators SEC and FINRA should be ready to initiate criminal proceedings against cybercriminals in the cryptography and other innovative technologies industry. Speaking about the legal aspects of the idea, Gensler emphasized that now they are required to formulate “rules of the road” and “put a policeman” to protect ordinary investors.

Gensler’s colleague, Hester Pearce, suggested creating a “safe haven” for cryptocurrency projects. Thus, startups will have a three-year “calm” period for issuing tokens before the agency registers their coins as securities. Pearce suggested that this form of assets “evolves” over time, leaving the list of investment vehicles. In addition, such a policy will also affect crypto-exchanges, making the sale of tokens on them more convenient both for the team of trading platforms and for users.

Earlier, the head of the SEC said that the regulatory framework created for crypto exchanges under the leadership of the CFTC or SEC should be a boon, having a positive impact on consumer confidence and protection. Since now the protection against market manipulation and fraud, he said, “leaves much to be desired.”

Gensler’s statements are unlikely to impress the US Government, but they will definitely give the crypto community confidence that the agency is now interested not only in controlling the industry but also in protecting investors and their funds.

Source: CoinShark

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