The Chair of SEC, Gary Gensler has recently written a <a href="https://www.warren.senate.gov/imo/media/doc/gensler_response_to_warren_-_cryptocurrency_exchanges.pdf" target="_blank" rel="nofollow noopener">letter</a> to Sen. Elizabeth Warren releasing a warning that the investors are not properly secured in the crypto market. This release comes following the failure of the crypto industry to strip new tax-reporting requirements for crypto brokers out of the US infrastructure bill.
<h2>Gary Gensler of the SEC Wrote to Sen. Elizabeth Warren Regarding Crypto Regulations</h2>
Gary Gensler, the Chair of the Securities and Exchange Commission of the United States (SEC), wrote in response to the July 7 inquiry of Sen. Elizabeth Warren.

The <a href="https://www.cryptoknowmics.com/news/in-a-letter-to-yellen-sen-elizabeth-warren-calls-for-more-crypto-regulations/">inquiry</a> mentioned that he address the highly opaque and fluctuating crypto market and find out whether there is a need for the U.S. Congress to take any action.

In response to the Massachusetts Democrat, Gensler said:
<blockquote>“Right now, I believe investors using these platforms are not adequately protected.”</blockquote>
Moreover, the letter reverberates the comments Gensler made to the Aspen Security Forum two days earlier and called these assets “rife with fraud, scams, and abuse,” asking Congress for additional authority to:
<blockquote>“Keep crypto transactions, products and platforms from falling between the regulatory cracks.”</blockquote>
<h2>Gensler’s Explanation of the Letter and Working of Crypto Platforms </h2>
In the letter, Gensler explained the structure of the crypto market and the working of the trading platforms. He wrote:
<blockquote>“It doesn’t matter whether it’s a stock token, a stable value token backed by securities, or any other virtual product that provides a synthetic exposure to underlying securities. These products are subject to the securities laws and must work within our securities regime.”</blockquote>
Until now, SEC has been the sole enforcement authority responsible for establishing itself as a major regulator of cryptocurrencies and winning cases against frauds. 

Appreciating the efforts of Gary Gensler on taking <a href="https://www.cryptoknowmics.com/news/sec-chairman-gary-gensler-calls-for-regulation-of-crypto-exchanges/">steps</a> for regulation of crypto, Sen. Elizabeth Warren said:
<blockquote>“I’m glad SEC Chair Gensler agrees and has directed the SEC to use its full authority to address these risks, and that he has also identified where additional regulatory authority may need to be granted by Congress.”</blockquote>

SEC Chair Gary Gensler Wrote to Sen. Elizabeth Warren Regarding the Need for Increased Regulatory Authority Over Crypto

The Chair of SEC, Gary Gensler has written a letter to Sen. Elizabeth Warren releasing a warning that the need for strict crypto regulatory frameworks.

Sahaj is an aspiring journalist with a keen interest in cryptocurrency and the whole concept of Blockchain technology. He is positive about the future potential of Cryptocurrency and Blockchain in shaping the world of finance for good. At present, he is covering the latest developments in the field of the cryptosphere.

SEC Chair Gary Gensler Wrote to Sen. Elizabeth Warren Regarding the Need for Increased Regulatory Authority Over Crypto

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