Gary Gensler, the newly named chairman of the US Securities and Exchange Commission (SEC), has asked the United States Congress to discuss crypto regulation in bigger depth and make some major changes.

Gensler was prompted to do so after Republican Patrick McHenry asked what will the Commission do to make sure that the cryptocurrency sector follows the law. The chairmen then acknowledged that investors from the States do suffer from a lack of security when dealing with cryptocurrencies like Bitcoin on the exchanges. He then urged Congress to work on better protecting investors on cryptocurrency exchanges.

Gensler acknowledged that Congress holds the power to up investor security via cryptocurrency regulation, seeing how such exchanges don’t have regulatory frameworks given by either the Commission or the Commodity Futures Trading Commission (CFTC).

True, the Securities and Exchange Commission does have authority over virtual assets that the regulator will see as securities, but Bitcoin doesn’t fall into that category.

The chairman said that the US law sees Bitcoin as a commodity that is not overseen by the SEC. Without instilling a more robust oversight on cryptocurrency exchanges, investors on these platforms are much more exposed to scams. Two trillion cryptocurrency markets will benefit from better investor security, so Gensler suggested that the US Congress should step up and better deal with the cryptocurrency industry.

The chairman also touched upon the GameStop situation and what role do platforms like Reddit have in such situations. Gensler underlined that freedom of speech will not be compromised, but that he was interested to see if there were malicious players who took advantage of Reddit in order to manipulate the stock prices and boost them.

The public is now awaiting a report from SEC regarding the GameStop scandal. It’s expected sometime over the summer.

Handling the Cryptocurrency Industry

Gensler came into power at the SEC just last month. Even during his nomination, he spoke about how policymakers should have more control over cryptocurrency assets. We can expect that his role in the Commission will affect the cryptocurrency industry in upcoming times. Cryptocurrency enthusiasts think that Gensler will push for Bitcoin ETF approval and for more transparency in the crypto sphere.

The chairman has a rich background in the finance sector, serving as a former Commodity Futures Trading Commission chairman and being a former Goldman Sachs investment banker. He set himself apart from predecessors by being the first blockchain tech expert to head the Commission – he taught the course “Blockchain and Money” at the MIT Sloan School of Management and he sees Bitcoin as a “catalyst for change.”