SEC Chief: Give Us More Power Over Crypto Before 'A Lot of People' Get Hurt

"There are some gaps in this space, though: We need additional congressional authorities to prevent transactions, products, and platforms from falling between regulatory cracks. We also need more resources to protect investors in this growing and volatile sector."

The SEC stands ready "to work closely with Congress, the administration, our fellow regulators, and our partners around the world to close some of these gaps," Gensler added.

The legislative priority "should center on crypto trading, lending, and DeFi platforms," he argued. "Regulators would benefit from additional plenary authority to write rules for and attach guardrails to crypto trading and lending.

Right now, he continued, "large parts of the field of crypto are sitting astride of — not operating within — regulatory frameworks that protect investors and consumers, guard against illicit activity, ensure for financial stability, and yes, protect national security."

Greg Valliere, chief U.S. strategist of AGF Investments, said in his Wednesday morning Capitol Notes email briefing that Gensler, along with Sen. Elizabeth Warren, D-Mass., and other progressives will make cryptocurrency legislation "a major cause. At the best, the industry will face headline risk; at the worst, legislation will get attached to one of the big spending bills this fall, giving SEC the authority Gensler is seeking."

Pictured: SEC Chairman Gary Gensler