US Securities and Exchange Commission (SEC) Chairman Gary Gensler explained that cryptocurrencies do not have sufficient investor protection. He added that securities regulators need more funds and manpower to effectively supervise the crypto industry.

SEC Chairman Gensler says more funds are needed to regulate the crypto space

SEC Chairman Gary Gensler detailed his agency’s approach to overseeing cryptocurrencies in front of the Senate Banking Committee on Tuesday. He assured the senator that the SEC is working overtime to create a regulatory framework for crypto assets.

Noting the arduous nature of this task, he told Senator Catherine Cortez Masto that the U.S. Securities and Exchange Commission could use “more people” to evaluate 6,000 digital “items,” and according to U.S. securities laws. Determine whether they are securities. He said:

At present, we just don’t have enough investor protection in terms of encrypted finance, issuance, trading or lending. Frankly speaking, at this time, it is more like the Wild West or the “buyer beware” old world that existed before the securities law was enacted.

Senator Pat Toomey, a ranking member of the committee, put pressure on Gensler on whether stablecoins meet the definition of securities. He emphasized:

I think we need to clarify this point. I think you should disclose this publicly… and of course we should not take enforcement action against someone without first making it clear.

Gensler insists that the rules of cryptocurrency are clear. “We have a set of investor protection laws in this country… It was enacted in the 1930s, and Congress wanted to protect the public from fraud and other bad actors… I think these laws [on cryptocurrencies] It’s very clear,” he told CNBC on Wednesday. “Case law, the Supreme Court has weighed this many times, and many of these tokens are indeed subject to securities laws. “

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