US is close to finalizing the details of the crypto regulations as the US treasury has submitted the draft to President Biden. While SEC is the main watchdog regarding securities, finance, and investments, its responsibilities will increase. He said that their main focus would be the well-being of the investors. Along with that, it will also protect exchanges, service providers, etc.
SEC has been facing issues due to some court cases. As recently, SEC Vs. Ripple case has continued to develop; there are chances that the final verdict will be decided by the close of 2022. Some other companies have also filed a lawsuit against SEC, alleging it for not following the proper guidelines. What the court will decide in these cases is yet to be seen.
Here is a brief overview of Gary Gensler’s statement regarding the SEC and its responsibilities.
Crypto regulations across the globe
The demand for crypto regulations came amid the bearish market as the investors saw unending losses. The changes for big coins in the market while the collapse of Terra UST had been the moment when investors felt a distrust in the market. These changes led to a demand for increased regulations of cryptocurrencies. China outrightly banned the use of cryptocurrencies, while Russia went for banning its use as a payment option.
The US remained reluctant to finalize the draft for crypto regulations until Biden asked the relevant authorities through an executive order for the regulations’ draft. Soon after the executive order, the US treasury began to work on the preparation of a draft for this purpose. It didn’t take much time and was submitted recently, which is under review while it is expected to be implemented soon.
As the time for implementation of crypto regulations comes closer, SEC has braced itself for the responsibilities that will be on its shoulders anytime soon. Chairman Securities and Exchange Commission was talking to Yahoo Finance about the details of their upcoming responsibilities as the regulations are implemented.
SEC and crypto regulation
Gensler responded to the question of what would be the responsibilities of the SEC in the upcoming months. He said that the investors and customers would benefit from these regulations as they would be safe from possible problems caused due to service providers. According to Gensler, their main focus areas will be exchanges, brokerage, and lending. He said they are talking to stakeholders to inform them about their demands.
While he also said that they are open to talks and discussions, asking exchanges, lenders, and other dealers to come and talk to them. He said that they have special powers from Congress to protect investors and thus, can change some rules for this purpose. According to him, they even have the power to ask for tokens for disclosures. He said that the public has the right to know full details and honest disclosures, which will be their basic protection.
SEC is mandated to cover tokens, stablecoins, and unstable coins, so they will also have the authority to talk to banking regulators and CFTC. He has reiterated the claim that Bitcoin is not a security token while CFTC will decide about the rest of the tokens. He has also warned that many crypto tokens would fail, so investors need to be careful.
Conclusion
US Securities and Exchange Commission head Gary Gensler talked to Yahoo Finance about the future responsibilities of his organization. According to him, they will soon have the leading role in regulating digital assets. He talked about their main aim, protecting the investors, and how they will ensure it. While he also said that SEC has special powers from Congress, so they will exercise them to protect the investor.
Source: https://www.cryptopolitan.com/sec-chairman-gary-gensler-outlines-details/