Gensler crypto crackdown would be gift in disguise

Gensler crypto crackdown would be gift in disguise

(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) WASHINGTON - For cryptocurrency backers, hoping for regulation might sound like turkeys voting for Thanksgiving. But plans by chief securities watchdog Gary Gensler to bring the $2.8 trillion industry under an investor protection framework could give digital assets a long-term boost. That’s why Gensler’s overly long to-do list – one that keeps getting longer – is a risk for crypto, not an opportunity. Gensler is already eyeing potential regulatory targets ranging from special purpose acquisition companies to the way online brokerages like Robinhood get paid, as well as taking up the Securities and Exchanges Commission’s decades-long fight over whether Chinese companies should be listed in the United States. On Wednesday the SEC chair added hedge fund fees to this list of bugbears. Crypto could fall through the cracks – but shouldn’t. The market for digital assets like bitcoin, non-fungible tokens and so-called stablecoins like Tether is stacked with risks investors may not fully grasp, like the theft of funds and currency volatility. Companies like trading platform Coinbase Global COIN.O have publicly resisted oversight; the industry is building its D.C. lobbying effort. Overseeing crypto brings multiple challenges, such