By Michael Scott
Intercontinental Exchange Inc (ICE) chief executive Jeffrey Sprecher supported Senator Elizabeth Warren’s bill that proposes sweeping powers for SEC oversight in cryptos as securities. The bill prompted by the crypto skeptic Senator Warren imposes bank-like obligations for firms running centralized exchanges.
ICE’s Chief Supports Regulatory Clarity
Sprecher believes Warren’s bill will bring regulatory clarity as most cryptocurrencies will fit the securities category. The increased appetite for regulating cryptocurrencies is welcome amidst the contagion from the FTX’s implosion. Sprecher supports that the renewed regulatory focus is warranted, given the billions in digital wealth trapped in the embattled FTX. He sympathized with the consumers whose deposits are potentially forever lost.
Addressing the Financial Services conference by Goldman Sachs Group on December 6, the ICE executive noted that FTX collapse soured the crypto’s reputation. He illustrated a sufficient ground to regulate crypto assets similar to the securities treatment.
The bill proposing securities-like treatment for crypto assets will offer much-needed protection to consumers while providing apparent regulatory oversight into centralized exchanges and crypto brokers’ actions.
Sprecher rallied the support of executives at the Goldman Sach conference for Warren’s bill. He argued that it delivers transparency while segregation users’ funds. Besides, he commended the proposals as distinguishing exchange and broker-dealer responsibilities, thereby separating settlement and clearing functions.
Senator Warren’s Proposed Whip on Cryptos
Senator Warren confessed to working on proposals to empower Securities and Exchange Commission (SEC) oversight powers over the crypto space. The revelation of the bill proposed by the crypto-skeptic parliamentarian affirms the senator’s earlier sentiment to eliminate regulatory ambiguity. While the bill is within the infant stage, Senator Warren spokesperson Alex Sarabia admitted she is working on a bill to empower the SEC’s role in the crypto space.
Sarabi revealed the crypto legislation is inspired by the belief that SEC should have defined oversight and regulatory authority to curb crypto fraud.
Warren’s proposal will end the long-running confusion about whether crypto assets are commodities or securities. Previously, critics of crypto assets have admitted Bitcoin as the unanimously agreed commodity citing its decentralized nature.
Ending Confusion in the Crypto Space
Warren’s bill will end the confusion where Ether (ETH) is perceived as a commodity, with others retracting their support. Rostin Behnam, the chief executive at the Commodity Futures Trading Commission (CFTC), backtracked earlier recognition of ETH as a commodity. In his latest address at the Princeton University crypto event, Behnam admitted only Bitcoin satisfies the commodity status.
Behnman’s perspective is backed by Michael Saylor, famous for his Bitcoin evangelism stance. The MicroStrategy founder identifies other crypto assets as perpetrating securities fraud. He rallied for a powerful SEC to crack the whip on the noncompliant securities – referring to ETH and Solana.
Saylor echoed his criticism of Ripple (XRP), Sol, and ETH in a December 6 PDB Podcast appearance. He attributed their issuance and control to the centralized crypto firms operating as unregistered securities.