Gary Gensler is the chairman of U.S. Securities and Exchange Commission. He has described what you can expect from this securities watchdog regarding crypto regulation. “We do have robust authorities from Congress also to use our exemptive authorities that we can tailor investor protection,” he explained.
Chair Gensler Highlights SEC’s Work on Crypto Regulation
In an interview with Yahoo Finance Live, Gary Gensler, Chairman of the SEC discussed what to expect from his organization regarding U.S. cryptocurrency regulation. He was asked, “What can we expect from the SEC in the coming months on the crypto regulatory front?”
Gensler replied: “More broadly, the public right now would benefit from investor protection around these various service providers … the exchanges, the lending platforms, and the broker-dealers.” The SEC chief elaborated:
So, we at the SEC, are working in each of those three fields — exchanges, lending, and the broker-dealers — and talking to industry participants about how to come into compliance, or modify some of that compliance.
Gensler stressed he has repeatedly told crypto exchanges, trading platforms, and lending platforms: “Come in, talk to us.”
He stated that Congress gives the SEC authority to change rules to improve investor protection.
Congress has strong authority to also use exemptive powers that can be tailored for investor protection.
The securities watchdog is able to tailor the disclosures made for tokens, he said. He also suggested that not all disclosures that are required for issuance of equities may apply for crypto-issuers.
“The public benefits by knowing full and fair disclosure and that somebody is not lying to them … basic protection,” the SEC boss emphasized.
Gensler shared more details about what to expect of his agency regarding crypto regulation.
Also, we are looking into the tokens and stablecoins as well as the non-stablecoins. In addition, discussions are ongoing with regulators of banks and our colleagues from the CFTC.
He reiterated that “Bitcoin is a non-security token,” adding that with non-security tokens, the SEC will send information to the Commodity Futures Trading Commission (CFTC) and “collaborate as best we can.” In June, Gensler said bitcoin is a commodity but would not comment on other crypto tokens, including ether (ETH).
The SEC chair proposed in May “one rule book” for the regulation of crypto tokens. At the time, he said that he was working with his counterparts from the CFTC on a memorandum to understand. It would be a formal agreement that ensures that digital asset trading is transparent and secure.
Gensler warned of the imminent collapse in cryptocurrency terra (LUNA), and stablecoin-terrausd. (UST) He also cautioned investors about “too good to be true” crypto products after crypto lender Celsius Network froze withdrawals.
Celsius’s decision to banish accounts is under investigation by the SEC. Last week, the crypto company filed for bankruptcy protection. The securities regulator is also investigating Do Kwon’s Terraform Labs and UST.
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