The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, explained what to expect from the Securities and Exchange Commission regarding crypto regulation. “We also have strong congressional powers to use our exempt powers that we can allocate investor protection,” he explained.
President Gensler highlights SEC’s work on regulating cryptography
SEC President Gary Gensler explained what to expect from his agency regarding US crypto regulation Thursday in an interview with Yahoo Finance Live. 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 will benefit right now from investor protection around these multiple service providers…exchanges, lending platforms, brokers, and dealers.” The head of the Securities and Exchange Commission explained:
So, we at the SEC, we’re working in each of these three areas — the exchanges, the lending, the brokers — the dealers — and we’re talking to industry participants about how to comply, or modify some of that compliance.
Gensler emphasized that he repeatedly told cryptocurrency exchanges, trading platforms, and lending platforms: “Come and talk to us.”
He explained that the SEC has the authority from Congress to amend some rules to better protect investors, saying:
We have strong congressional powers as well to use our exempt powers that we can assign investor protection.
He noted that the Securities and Exchange Commission could even detail what might be the disclosure of the token itself, adding that perhaps not all of the disclosures about a person’s issuance of shares would apply to cryptocurrency issuers.
“The general benefits of knowing full and fair disclosure and that someone is not lying to them… is essential protection,” the SEC chief stressed.
Regarding what to expect from his agency regarding crypto regulation, Gensler also shared:
We are also looking at tokens, stablecoins, and non-stable coins. Separately, we are in discussions with bank regulators and with our friends and colleagues at the CFTC.
“Bitcoin is a non-security token,” he reiterated, adding that with non-security tokens, the SEC will send the information to the CFTC and “cooperate as much as possible.” In June, Gensler said Bitcoin is a commodity But we will not comment on other tokens, including ether (ETH).
The President of the Supreme Education Council in May suggested “one rule book“to regulate cryptocurrencies. He revealed at the time that he was working on a memorandum of understanding with his CFTC counterparts, noting that it would be a formal deal to ensure that trading in digital assets has adequate safeguards and transparency.”
Following the collapse of cryptocurrency Terra (LUNA) and Stablecoin Terrausd (UST), Gensler warned that Many ciphers will fail. He also warned investors of “Too good to be trueCrypto products after crypto lender Celsius Network freezes withdrawals.
Currently, the Securities and Exchange Commission probe in Celsius Because of its decision to freeze the accounts. The crypto company applied to bankruptcy protection last week. Stock regulator is also Investigation Do Kwon Terraform Laboratories and UST.
What do you think of Securities and Exchange Commission Chairman Gary Gensler’s comments on crypto regulation? Let us know in the comments section below.
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