Gary Gensler is the chairman of U.S. Securities and Exchange Commission. He has asked SEC staff members to work with the Commodity Futures Trading Commission. This will help develop a plan to regulate crypto trading platforms.
SEC and CFTC to Regulate Crypto Exchanges
Gary Gensler (chair of the U.S Securities and Exchange Commission) spoke Monday about regulation of cryptocurrency at an event held by University of Pennsylvania Carey Law School.
“The SEC’s remit is overseeing the capital markets,” the SEC chief began, adding that the agency has a “three-part mission: protecting investors, facilitating capital formation, and maintaining fair, orderly, and efficient markets.”
Noting that the SEC is concerned about regulating crypto “platforms, stablecoins, and crypto tokens,” Gensler stressed:
There’s no reason to treat the crypto market differently just because different technology is used. Technology should not be a factor in our decision-making.
The chairman of the SEC said: “I’ve asked staff to consider how best to register and regulate platforms where the trading of securities and non-securities is intertwined.” He elaborated:
In particular, I’ve asked staff to work with the Commodity Futures Trading Commission (CFTC) on how we jointly might address such platforms that might trade both crypto-based security tokens and some commodity tokens, using our respective authorities.
Gensler stated that there are more rules needed for cryptocurrency exchanges. He cited that retail investors are vulnerable to market manipulation and scams.
He stated many times, as chairman of the SEC, that crypto tokens listed on platforms with 50, 100 or 5000 coins are most likely securities. He stated:
Jay Clayton was my predecessor and it is something I repeat: Crypto tokens can be investment contracts under the Howey Test.
Recently, U.S. U.S. Senators Kirsten Gilbrand (D.N.Y.), and Cynthia Lummis, (R.Wyo.) recently unveiled their plan to introduce a broad-based regulatory framework for cryptocurrency. The senators, Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R.Wyo.), unveiled their plans to establish a wide-based regulatory framework in cryptocurrency. The framework states that the CFTC will regulate some parts of the sector while the SEC will oversee others.
Senator Lummis stated specifically that the CFTC would play a larger role in the new crypto framework. “When you look at bitcoin and ethereum in particular, it’s pretty clear to me those are commodities,” she explained.
Two U.S. legislators urged Gensler to form a working group with the acting Chairman of the CFTC in August 2018.
How do you feel about the SEC and CFTC working together to create a regulation framework for cryptocurrency exchanges? Comment below to let us know your thoughts.
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