Bitcoin Traders in U.S. Lack Investor Protections, Gensler Says

U.S. investors lack protections when they trade Bitcoin on cryptocurrency exchanges, Securities and Exchange Commission Chairman Gary Gensler told lawmakers.

While his agency currently has authority to regulate digital coins that are considered securities, trading in the world’s biggest cryptocurrency represents an oversight gap, Gensler said Thursday during a hearing of House Financial Services Committee. The SEC has signaled that Bitcoin is a commodity under U.S. law and therefore not subject to the agency’s toughest rules.