The head of the SEC wants to treat the crypto market like the stock market.

Gary Gensler, the head of the SEC, has expressed his desire to handle the cryptocurrency market in the same manner as regular financial markets. He went on to say that there is no need to perceive the cryptocurrency market as something distinctive and distinct from the capital markets simply due to the fact that it (the cryptocurrency market) uses a different technology.

What is the connection between cryptocurrency lending platforms and the auto manufacturing industry? Gary Gensler, chairman of the United States Securities and Exchange Commission, wrote an opinion piece for the Wall Street Journal that was published on Friday night. In the piece, he stated that both consumers and investment firms deserve support, and that this protection should apply to both motor vehicles and financial products.

During the Great Depression of the 1930s, President Franklin Roosevelt signed federal securities restrictions with the purpose of safeguarding venture capitalists. In the same way that the National Traffic and Motor Vehicle Safety Act, which President Lyndon Johnson signed in 1966, safeguards drivers today, those regulations were signed by President Franklin Roosevelt.

According to Gensler, recent market happenings, such as certain crypto lending platforms declaring themselves bankrupt or suspending investor accounts, highlight why it is essential for crypto firms to comply with securities legislation.

Gary Gensler, the head of the SEC, wants the cryptocurrency market to be treated like any other market.

It does not matter what kind of asset an investor invests into a cryptocurrency program – cash, gold, bitcoin, chinchillas, or anything else – according to his assertions, what matters is how well the cryptocurrency platform operates, which determines what kinds of legal safeguards are afforded.

For the benefit of investors, it is helpful to grasp the reasoning behind the crypto company’s claims that it would generate a particular return. Disclosure helps the investor comprehend what is going on with his or her investments by providing relevant information.

According to him, the crypto prototype, regardless of whether it is referred to as a loan framework, a cryptocurrency exchange platform, or a decentralized finance platform, cannot get out of complying with tried-and-true investor protections by simply slapping a name on the commodity or the advantages that are promised. The economic reality of a product, and not its labeling, is what determines whether or not it is a security in accordance with securities regulations, as the Supreme Court has stated numerous times.

This information was uncovered by the Securities and Exchange Commission during a recent settlement with the cryptocurrency lending website BlockFi.

The cryptographic business model and the cryptographic technology that underlies it do not naturally produce noncompliance as a side effect. According to Gensler, it seems more like these platforms are telling users that they have a choice, or even worse, that they are challenging users to “catch us if you can.”

On the same subject, Gary Gensler has been quoted as saying:

“We can do away with the notion that crypto financing is exempt from being subject to legislation. On the other hand, these regulations have been in place for many years. They are not being followed by the platforms.'”