SEC chief Gary Gensler says crypto will only become mainstream if clear rules are in place, as he plans tighter regulation

In April, Gary Gensler was elected chair of the SEC. Alex Wong/Getty ImagesGary Gensler, Chair of the SEC, stated that crypto can only thrive if there is clear regulation.He stated that investors require greater protection against fraud and suggested that he would like to concentrate on crypto exchanges.Gensler stated that the SEC is currently looking into at least seven areas of crypto, including DeFi and stablecoins as well as ETFs.Subscribe to our daily newsletter 10 Things Before The Opening Bell.Gary Gensler, the new chief of Securities and Exchange Commission, has stated that crypto will only be mainstreamed if regulators establish clear rules. He is aiming for stricter regulation in the $1.6 trillion digital asset marketplace.Gensler stated that investors should be protected against fraud in a broad interview with Bloomberg. Gensler also stated that the SEC is currently looking into at least seven market areas, including stablecoins and decentralized finance. He also suggested that he would like to concentrate on crypto exchanges.Gensler, who was a professor at MIT for a course on cryptocurrency, stated that he is neutral to the technology and even curious about it. However, he isn't neutral about protecting investors. In the interview, Gensler stated that "We have a responsibility as a nation to protect these investors against fraud."According to Bloomberg, Gensler stated that he believes digital assets will help boost economic progress and be more widely used.He said, "It's only when you bring things inside - and kind of within our public policy objectives - that technology has a chance to be adopted more widely." Gensler described it as a little like driving. It only takes off when there are clear rules.Continue reading: FalconX's CEO and founder, DeFi, explains 3 reasons why the crypto exchange FalconX is here to stay and shares 5 cryptocurrencies that institutional clients are most interested.Former Goldman Sachs partner stated that the SEC is working hard on digital assets. It's currently looking at at most seven key issues: initial coin offering, trading venues and lending platforms, decentralized financing or DeFi, stablecoins and custody.Gensler stated to Bloomberg that regulating cryptocurrency exchanges would be the best way for cryptocurrencies to be regulated. He urged Congress in May to pass legislation that would give the SEC greater oversight over trading venues.The jurisdiction that the sector falls within when it comes down to crypto regulation is key. The majority of regulators view bitcoin as a commodity rather than a security. This will likely mean that the largest cryptocurrency is not under the jurisdiction of the SEC.Gensler stated that DeFi lending could be subject to SEC supervision as it often offers a specific rate return. Gensler also suggested that platforms that pool digital assets could be similar to mutual funds and the SEC could regulate them.Gensler didn't say when the SEC would take further action on crypto. He said that other important issues like the GameStop scandal were taking place at the watchdog. Gensler also declined to comment on whether the SEC would approve bitcoin ETFs.