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Gary Gensler outlines what to expect from the SEC regarding US cryptocurrency regulation – regulation of Bitcoin news
The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has outlined what can be expected of the securities depository on crypto regulation. “We also have robust congressional authorities to use our exceptional authorities that we can tailor investor protection to,” he explained.
Chairman Gensler highlights the SEC’s work on crypto-regulation
SEC Chairman Gary Gensler outlined what he can expect from his US cryptocurrency agency on Thursday in an interview with Yahoo Finance Live. He was asked: “What can we expect from the SEC in the coming months on the cryptocurrency front?”
Gensler replied: “More generally, the public right now will benefit from investor protection around these various service providers … the stock exchanges, the lending platforms and the broker dealers.” The SEC chief elaborated:
So we in the SEC work in each of these three fields – stock exchanges, lending and broker-dealers – and talk to industry participants about how to come to terms, or change some of this.
Gensler stressed that he has repeatedly told crypto exchanges, trading platforms and lending platforms: “Come in, talk to us.”
He explained that the SEC has the authority from Congress to change some rules to better protect investors, and says:
We also have robust congressional authorities to use our exceptional authorities to tailor investor protection.
He noted that the securities watchdog can even tailor what the revelations can be for the tokens themselves, adding that perhaps not all revelations for someone issuing shares apply to crypto issuers.
“The public benefits from knowing full and fair disclosure and that no one is lying to them … basic protection,” the SEC chief stressed.
Regarding what to expect from his cryptocurrency agency, Gensler further shared:
We also look at tokens, stack coins and non-stack coins. Separately, we have discussions with the bank regulators and with our friends and colleagues at CFTC.
He reiterated that “Bitcoin is a non-security token,” adding that with non-security symbols, the SEC will send information to the Commodity Futures Trading Commission (CFTC) and “cooperate as best we can.” In June, Gensler said bitcoin is a commodity, but would not comment on other cryptocurrencies, including ether (ETH).
In May, the SEC leader proposed “one rulebook” for regulating cryptocurrencies. He revealed at the time that he was working on a memorandum of understanding with his colleagues at the CFTC, noting that it would be a formal agreement to ensure that trading in digital assets has adequate security measures and transparency.
After the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST), Gensler warned that many cryptocurrencies would fail. He also warned investors about “too good to be true” cryptocurrencies after cryptocurrency lender Celsius Network froze withdrawals.
The SEC is currently investigating Celsius’ decision to freeze accounts. The crypto company applied for bankruptcy protection last week. The Norwegian Securities Depository also investigates Do Kwons Terraform Labs and UST.
What do you think of SEC Chairman Gary Gensler’s comments on cryptocurrency regulation? Let us know in the comments section below.
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