TechFlow news — According to the Wall Street Journal, Securities and Exchange Commission (SEC) Chair Gary Gensler said the agency is exploring ways to improve the registration process for cryptocurrency trading platforms. For months, Gensler has been urging crypto exchanges such as Coinbase Global Inc. (COIN) to accept SEC oversight, arguing these firms allow investors to buy and sell assets that meet the legal definition of securities—requests that the platforms have rejected. The exchanges dispute claims that they trade securities and cite various technical reasons for why they believe SEC regulation would be impractical.
Speaking at an event hosted by the University of Pennsylvania Law School, Gensler said, "The role these crypto platforms play is similar to traditional regulated exchanges, so investors should be protected in the same way." He added that he has directed SEC staff to study how crypto trading platforms could register as exchanges and ensure they safeguard customer assets. This might require them to separate custody and market-making services from other parts of their business.
