The chairman of the US Securities and Exchange Commission aims to reach agreements with other financial institutions to prevent cryptocurrency operators from slipping through cracks in the fragmented regulatory structure of the United States.
Gary Gensler He told the Financial Times that he was talking to his Commodity Futures Trading Commission counterparts about formal trading to ensure proper protection and transparency in trading digital tokens.
His proposal comes from the efforts of U.S. authorities to monitor cryptocurrencies, which could potentially reduce the influence of the SEC by getting involved in Washington’s politics. Digital assets.. Capitol Hill lawmakers are in a hurry to clarify what is legal and who is responsible for oversight.
The SEC The CFTC has historically focused on different aspects of financial markets and rarely works together. The SEC primarily oversees securities and CFTC derivatives. Cryptocurrencies potentially span both markets.
At the same time, fines are being imposed for enforcement measures. Since the introduction of Bitcoin in 2008, U.S. regulators have collected $ 3.35 billion in crypto enforcement measures, up $ 179.7 million in the first half of this year, according to government data collected by British crypto analysis firm Elliptic. includes. The SEC It accounted for more than 70% of the penalty.
Gensler said he was working on a “Memorandum of Understanding” with the CFTC from 2009 to 2013. The SEC has jurisdiction over a platform that lists tokens that are considered securities.
If the token representing the commodity is listed on a platform monitored by the SEC, the securities regulator “sends that information to the CFTC,” Gensler said. The CFTC declined to comment.
“I’m talking about one rulebook on exchanges that protects all transactions regardless of pair — [be it] According to Jensler, Security Tokens and Security Tokens, Security Tokens and Commodity Tokens, Commodity Tokens and Commodity Tokens will protect investors from fraud, front-running and manipulation and provide order transparency.
The market for digital assets I grabbed it in the last few months Due to the impact of falling prices. Bitcoin prices have fallen by more than two-thirds from November’s record high of nearly $ 70,000. Exchanges have fired staff and some lending platforms are preventing clients from withdrawing assets.
Gensler is one of the loudest regulators calling for increased scrutiny of cryptocurrencies. Prompted the platform To discuss whether they should register with his agency.
“By getting the envelope of the integrity of the market, one rulebook on the exchange really helps the general public,” he added. “If this industry moves forward, we will build better trust in these markets.”
However, the bipartisan bill introduced by U.S. Senators Kirsten Gillibrand and Cynthia Lummis extends CFTC’s powers on the assumption that most digital assets resemble commodities rather than securities. Proposed a regulatory framework.
Agencies have traditionally focused on product derivatives such as futures and options, rather than the products themselves.
Lostin Behnam, who was appointed chairman of the CFTC in January, may have “hundreds, if not thousands,” of tokens eligible for commodities such as Bitcoin and ether in the FT earlier this year. Said.
Regulating the cash crypto market “may be natural for us,” he said. “I think the idea that we aren’t right is a bit off,” he added.
“The market is a market, whether it’s derivatives, equities, bonds,” Venum said. “There is always a natural relationship between … Derivatives and the cash market in general.”
Both he and Gensler refused to comment on whether expanding CFTC’s jurisdiction over cryptocurrencies would create friction or confusion with the SEC.
“It will be very helpful in clarifying the very delicate and difficult question of which coins make up commodities and which coins make up securities,” Venum said.
The Gillibrand and Lumis bill did a “very good job” in distinguishing between securities tokens and commodity tokens, Behavior Said at the meeting Early this month.
At an event a few days later, Gensler stopped commenting on the bill, but warned against undermining existing protection in the “$ 100 trillion capital markets.”
He added: “We don’t want stock exchanges or investment trusts.” .. .. Outside of this regime, I think it has brought significant benefits to investors and economic growth over the last 90 years. “
