SEC Chair Recommends “One Crypto Rule Book” To Prevent Loopholes #SEC #Chair #Recommends #Crypto #Rule #Book #Prevent #Loopholes Welcome to JibGlobe, here is the new resources we have for you today:
SEC Chair Gary Gensler on Friday said financial agencies in the U.S. should share “one” crypto rule book in order to prevent loopholes due to fragmented regulatory structure. The recommendation comes after the bipartisan crypto bill proposes the Commodity Futures Trading Commission (CFTC) for crypto oversight.
In fact, Gary Gensler is in discussion with his counterparts at the CFTC to ensure satisfactory protection and transparency regarding the trading of digital assets. Moreover, SEC Chair Gensler claims that most digital tokens are securities.
SEC Chair Urges Shared Crypto Oversight With the CFTC
The SEC and the CFTC have never worked in tandem earlier. The SEC oversees the securities industry and the CFTC regulates the derivatives markets. However, cryptocurrencies led both agencies to have oversight of the crypto market.
As a result, the regulatory burden has increased significantly on the crypto market, along with rising penalties. As per data by crypto analytics company Elliptic, U.S. regulators have collected $3.35 billion in crypto enforcement actions since 2008.
SEC Chair Gary Gensler has always called for a strict crypto oversight and registration of crypto platforms with the SEC. Moreover, he was working on a memorandum of understanding with the CFTC in which the SEC has jurisdiction over platforms listing tokens that are deemed securities.
However, the bipartisan crypto bill by US senators Kirsten Gillibrand and Cynthia Lummis proposed most digital assets resemble commodities rather than securities. It put crypto oversight in the hands of the CFTC, potentially reducing the SEC’s influence over digital assets.