The United States SEC (Securities & Exchange Commission) chairman Gary Gensler has emphasized that most digital coins are securities, reiterating that the law has clarified this.
Nevertheless, the CFTC (Commodity Futures Trading Commission) has asked Congress for powers over cryptocurrency spot markets. And Congress has seen multiple bills introduced this year to offer the CFTC the necessary authority.
SEC Chair on Cryptocurrency Regulation
The issue of the Fed agency regulating the cryptocurrency market has seen increased attention recently. While the US SEC Chair, Gary Gensler, said most crypto coins are securities and fall under his agency’s purview, most market players and lawmakers trust CFTC (Commodity Futures Trading Commission) should monitor the crypto space.
Moreover, 2022 has witnessed three bills launched in Congress to allow CFTC to regulate the crypto market. Meanwhile, Gensler explained the regulatory obligation during Monday’s CNBC interview.
Gensler stated that their agency controls such an environment. He explained that the public expecting profits from entrepreneurs raising cash from the public require fair, truthful, and full disclosure – SEC’s core bargain within the capital markets.
Gensler added that individuals raising money should present various information to market players taking the risk. He iterated that the Securities & Exchange Commission knows how to deal with that. He added that the law clarifies that & most tokens in the cryptocurrency space are securities.
Gensler reiterated that most tokens from the approximately 10K coins in the crypto space are securities. He remarked during Monday’s FSOC (Financial Stability Oversight Council) meeting, in which Janet Yellen of the Treasury presided. Meanwhile, securities laws cover sales and offers of these coins. Gensler trust that most cryptocurrency intermediaries transact in securities and should register with the SEC.
Meantime, the CFTC has applied for power over the cryptocurrency cash market. Rostin Behnam, CFTC chain, explained (last week) that CFTC doesn’t control the cash markets as it’s a derivatives watchdog. Therefore, he wants cash authority to regulate the crypto space and other commodity tokens.
He added that the CFTC and SEC should follow legislature as crypto remains a new asset. The crypto industry has more characteristics and components compared to its traditional counterparts. Behnam added that they should depend on 7-decade-old law to identify securities and commodities.