SEC Chairman Gensler’s New Speech on Exchanges, Stablecoins and Tokens Expected to Bring New Regulatory Focus

On April 4, 2021, SEC Chairman Gary Gensler gave a new speech on crypto-related issues at the University of Pennsylvania Law School. The speech focused on three main topics: (1) crypto exchanges and other trading and lending platforms, (2) stablecoins, and (3) "Tokens."

• Chairman Gensler's speech provides new insight into the approach the SEC will be taking in each of these three key areas.
• We can expect inbound regulatory efforts in each of the three areas he addressed, with potential SEC-CFTC coordination on exchange registration requirements, and some form of regulation or increased enforcement efforts with respect to stablecoins and tokens.
• The SEC clearly intends to step up regulation and enforcement in these areas and, in particular, seems to be set on mandating registration for crypto trading platforms.

In this C&G client alert, Douglas J Pepe outlines the key takeaways from SEC Chairman Gary Gensler’s speech on crypto-related issues and provides insight on what to expect regarding future regulation.