Gary Gensler, the chairperson of the United States Securities Exchange Commission (SEC), is heavily in favor of the cryptocurrency regulation rulebook. It will bring all relevant organizations together.
According to Stefania Palma of the Financial Times on June 24, Gensler thinks that the existence of various regulatory organizations will allow cryptocurrency entrepreneurs to profit from the disjointed systems.
The chair acknowledged that he is drafting a formal regulatory agreement with the Commodity Futures Trading Commission (CFTC) to ensure the security and openness of the market.
According to the SEC chair, a central crypto regulation framework will build more trust in the sector and protect the public. He noted that’s the only industry that can move forward.
Gensler says that with the rule book he means a rule book that provides security to all kinds of trading such as “security token versus commodity token, security token versus security token, front-running, manipulation, and commodity token versus commodity token to protect investors against fraud along with offering transparency over-order books.”
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Roles Of SEC And CFTC In Crypto Regulation
Both CFTC and SEC have worked in collaboration to regulate different sections of the crypto space, and their roles would be properly defined in case the bill before the U.S. Congress passes.
Cynthia Lummis, Wyoming Senate, introduced the bill which aims to properly define the role each agency will be playing in the regulation of digital assets. The CFTC has taken care of derivatives while the SEC has handled crypto securities, looking at the history.
Kirsten Gillibrand, a New York senator, has co-sponsored the bill and has also introduced a crypto regulatory framework that aims to give the CFTC more power. This is because of the notion that the majority of digital assets bear resemblance to commodities instead of securities.
Senate Lummis believe that Gensler’s plan indicates that there is no intention of the United States to put a ban on the crypto sector.
Lummis pointed out that the U.S “has crossed the chasm about Bitcoin (BTC),” at the same time noting that the world’s leading cryptocurrency is here to stay, according to the reports by Finbold.
Source: https://www.thecoinrepublic.com/2022/06/26/secs-gary-gensler-pushes-for-a-crypto-rule-book-aims-to-do-this/