In his speech at the 2023 Securities Enforcement Forum, Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterated his position that cryptocurrency firms should be subject to the same regulations as traditional financial institutions.

Gensler, who previously stated that cryptocurrency companies should comply with existing financial rules, expressed that he was not surprised that the industry resisted this point of view, citing its “widespread non-compliance”.

“There is nothing about cryptoasset securities markets that suggests investors and issuers are any less deserving of the protections of our securities laws,” Gensler said.

He also noted that Congress could have limited enforcement of the securities laws to stocks and bonds when they were enacted in 1933 and 1934, but they did not. Instead, according to Gensler, Congress chose to include a broad range of definitions of securities, including 'investment contract'.

Gensler described the problems threatening the cryptocurrency industry as “not surprising” and pointed out problems such as “scams, forgeries, bankruptcies and money laundering”. He noted that although many organizations in the crypto space claim to operate beyond the reach of pre-existing regulations, they often quickly seek legal protection when faced with bankruptcy or private disputes.