Chair Gensler: Crypto Markets Not Incompatible With Securities Laws

Calling to mind the words of the very first SEC leader nearly 90 years ago, SEC Chair Gary Gensler noted that the core principles of investor protection apply to all corners of the securities markets – including securities and intermediaries in the crypto market – during his opening remarks at the annual "SEC Speaks" event in Washington D.C. on Sept. 8.

“Joseph Kennedy, the first Chairman of the SEC, had a saying: 'No honest business need fear the SEC,'" Chair Gensler said as he went on to explain how over the generations, Congress has "refined and amended" the securities laws created in Kennedy's day. Yet the core principles have remained the same. "Nothing about the crypto markets is incompatible with the securities laws," Chair Gensler said. "Investor protection is just as relevant, regardless of underlying technologies."

Chair Gensler noted how investors, issuers, and our overall economy have benefited from the federal securities laws and the SEC’s engagement for nearly 90 years.

"That oversight should not change just because the issuance and trading of certain securities is based on a new technology. The investing public benefits when they receive disclosures and related protections about a project’s prospects and business. The investing public benefits when intermediaries are registered and overseen."

Chair Gensler concluded his remarks by saying, "I look forward to working with crypto projects and intermediaries looking to come into compliance with the laws. I also look forward to working with Congress on various legislative initiatives while maintaining the robust authorities we currently have. Let’s ensure that we don’t inadvertently undermine securities laws underlying $100 trillion capital markets. The securities laws have made our capital markets the envy of the world."

Read the full text of Chair Gensler's remarks entitled "Kennedy and Crypto" delivered Sept. 8, 2022.