US SEC Chair Gary Gensler Supports Legislation That Gives CFTC Authority Over Cryptocurrency
Gary Gensler, the chairman of the Securities and Exchange Commission of the United States, stands in support of the legislation with which the Commodity Futures Trading Commission gets higher authority in the case of cryptocurrency.
Gary Gensler Suggests Directness for Crypto Projects while Maintaining Securities Laws
In noted comments for a program conducted on the behalf of Practising Law Institute on Thursday, Gensler appreciated the mediators within the world of cryptocurrency and the projects related to crypto-based security tokens as well as the stablecoins to have a registration with the Securities and Exchange Commission, while repeating his approach of discussing to sort the matters.
As per the chairman of the SEC, nearly 10,000 tokens within the market of crypto are based on securities and they are subject to the regulations set by the agency. There is a requirement for them to ensure the protection of the investors. He added that he intends to operate with the crypto programs and mediators pursuing to abide by the laws.
According to him, he is always eager to operate with Congress in the matter of legislative endeavors while maintaining the authorities under their possession at the moment. In his words, they need to ensure that they do not accidentally overwhelm the laws related to securities comprising the capital markets of approximately $100T.
As recommended by Gensler, the crypto mediators may require registering each of the operations thereof with CFTC as well as the SEC, in line with the fact if they offered the services as broker-dealer, custodian, or an exchange. He moved on to say that the intermingling of the diverse operations of the crypto mediators causes inherent clashes of interest as well as hazards for the investors.
Senator Lummis Proposes a Bill Elucidating CFTC and SEC’s Role for Crypto
The disaggregation of their operations into distinctive legal bodies could minimize the respective clashes and improve the protection of the investors. Currently, Congress members are looking for diverse legislative ways targeted at the regulation of the crypto market. As witnessed in August 2022, the Senate Agriculture Committee’s prominent participants launched the Digital Commodities Consumer Protection Act.
This legislation, if approved, would potentially make spread the authority of the CFTC to regulate Ether (ETH) and Bitcoin (BTC). A bill was additionally proposed by senators Kristen Gillibrand and Cynthia Lummis in June to clarify both the CFTC and SEC’s role in the projects of cryptocurrency.
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