{"id":69044,"date":"2022-10-25T10:22:40","date_gmt":"2022-10-25T07:22:40","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=69044"},"modified":"2025-09-07T17:36:01","modified_gmt":"2025-09-07T14:36:01","slug":"sec-chief-says-the-cryptocurrency-market-is-centralised","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-chief-says-the-cryptocurrency-market-is-centralised\/","title":{"rendered":"SEC chief says the cryptocurrency market is centralised"},"content":{"rendered":"<p>Contrary to popular belief, the cryptocurrency market is not characterised by decentralisation. This follows from comments by the head of the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> Gary Gensler, The Block writes<a href=\"https:\/\/www.theblock.co\/post\/179459\/gensler-sec-sees-centralization-in-crypto-markets\"> The Block<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Intermediaries profit from scale, network effects and access to valuable data. While technological innovations continually disrupt existing business models, centralisation nonetheless tends to re-emerge. It is present in the crypto market as well, where there is a significant concentration of intermediaries,&#8221;<\/em> he explained.<\/p>\n<\/blockquote>\n<p>The SEC chief warned that vigilance is needed regarding areas where centralisation and potential economic rents have grown or could grow in the future.<\/p>\n<p>Gensler acknowledged that most crypto exchanges violate securities law by listing unregistered investment contracts.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;They typically have hundreds of tokens. That is more than enough to indicate that some of them are securities,&#8221;<\/em> he explained.<\/p>\n<\/blockquote>\n<p>The SEC chief urged Bitcoin exchanges to approach the agency on whether a given asset should be recognised as an investment contract. He added that the Commission is prepared to work on a case-by-case basis regarding the possibility of exempting a given token.<\/p>\n<p>Gensler urged Congress to drop legislation that &#8220;undermines the competitiveness of the stock markets or fixed-income markets.&#8221; This could be achieved by changing the terminology surrounding the activities of brokers or exchanges, to adapt to a new class of financial assets.<\/p>\n<p>The SEC chief emphasised the need for even-handed treatment of market participants. This would allow focus on &#8220;price competition, service and other key factors&#8221; rather than market manipulation.<\/p>\n<p>Earlier, Gensler announced the development of ways to register digital assets as investment contracts and stepped up efforts to authorise crypto platforms. In May, the official warned of possible <a href=\"https:\/\/u1f987.com\/en\/news\/sec-chief-signals-possible-enforcement-action-against-unregistered-crypto-exchanges\">prosecution of unregistered Bitcoin exchanges<\/a>.<\/p>\n<p>In July, a group of senators <a href=\"https:\/\/u1f987.com\/en\/news\/sam-bankman-fried-backs-bill-to-transfer-crypto-market-oversight-to-the-cftc\">introduced<\/a> the Digital Commodities Consumer Protection Act. It would require firms offering trading of digital assets to register with the <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span>.<\/p>\n<p>Later, Gensler <a href=\"https:\/\/u1f987.com\/en\/news\/sec-chief-backs-expansion-of-cftc-powers-in-the-crypto-industry\">supported<\/a> expanding the CFTC&#8217;s mandate in the industry.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news in our <a href=\"\/\/telegram.me\/forklog\u201d\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 crypto news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contrary to popular belief, the cryptocurrency market is not decentralised. This follows from comments by SEC chairman Gary Gensler, The Block reports.<\/p>\n","protected":false},"author":1,"featured_media":69045,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1269,1181,36,128],"class_list":["post-69044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrencies","tag-gary-gensler","tag-regulation","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=69044"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69044\/revisions"}],"predecessor-version":[{"id":69046,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69044\/revisions\/69046"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/69045"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=69044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=69044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=69044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}