U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has instructed SEC staff to work with the Commodity Futures Trading Commission (CFTC) to develop a new regulatory plan for crypto trading platforms -change.
SEC wants to work with CFTC to regulate crypto exchanges
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler spoke about cryptocurrency regulation on Monday at an event hosted by the Carey Law School at the University of Pennsylvania.
“The SEC’s mandate is to oversee capital markets,” the SEC chief began, adding that the agency has a “three-part mission: to protect investors, facilitate capital formation, and maintain fair markets.” , orderly and efficient”.
Noting that the SEC is concerned about the regulation of “crypto platforms, stablecoins, and crypto tokens,” Gensler pointed out:
There is no reason to treat the crypto market differently just because a different technology is being used. We should be technologically neutral.
The SEC Chairman said, “I have instructed staff to consider how best to register and regulate venues where trading in securities and non-securities is closely intertwined.” He precised :
In particular, I asked staff to work with the Commodity Futures Trading Commission (CFTC) on how we could jointly approach those platforms that could trade both crypto security tokens and certain commodity tokens, using our respective authorities.
Gensler pointed out that more rules are needed to oversee cryptocurrency exchanges, citing that retail investors are currently vulnerable to scams and market manipulation.
The SEC Chairman has repeatedly stated that many crypto tokens on platforms with 50, 100, or even 5,000 listed coins are likely securities. He said:
My predecessor Jay Clayton said it, and I’ll say it again: without prejudging any token, most crypto tokens are investment contracts under the Howey test.
Recently, US Senators Kirsten Gillibrand (DN.Y.) and Cynthia Lummis (R-Wyo.) unveiled their plan to introduce a general regulatory framework for cryptocurrency. According to the framework, some aspects of the industry will be regulated by the CFTC and some will be supervised by the SEC.
Senator Lummis specifically said that the CFTC will play a bigger role in the new crypto framework. “When you look at bitcoin and ethereum in particular, it’s pretty clear to me that they’re commodities,” she explained.
In August last year, two U.S. lawmakers urged Gensler and the acting CFTC chairman to create a joint task force for the regulation of crypto assets.
What do you think about the collaboration between the SEC and the CFTC to propose a regulatory framework for crypto exchanges? Let us know in the comments section below.
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