SEC Chair Gary Gensler revealed the collaborative crypto regulation plans through a speech delivered during the Penn Law Capital Markets Association’s annual conference on 4 April. The speech underscored the importance of regulators in ensuring financial stability, investor protection, fair, orderly, and efferent markets.
Gensler also noted the need for technology neutrality in regulation and said that cryptocurrencies should not be treated differently because of their different technology.
He further proceeded to list out the crypto-related areas that the SEC will target with its regulatory strategy. He revealed that he asked his staff members to create strategies for regulating platforms. The SEC requested they combine securities and non-securities trading regulation strategies while noting their collaboration with the CFTC.
“I’ve asked staff to work with the Commodity Futures Trading Commission (CFTC) on how we jointly might address such platforms that might trade both crypto-based security tokens and some commodity tokens, using our respective authorities.”
Well, the best case study for crypto regulation could be SEC v. Ripple case. After Gensler’s recent comments, crypto traders wondered if XRP’s price will see any fluctuations.
Can crypto regulation collaboration affect XRP?
The announcement has received differing reactions on its potential impact on the cryptocurrency market. Crypto influencer @CryptoWhale’s tweet about the SEC-CFTC’s regulatory partnership received interesting takes, especially on the potential impact on XRP.
JUST IN: The SEC and the Commodity Futures Trading Commission (CFTC) announce official partnership to supervise the #cryptocurrency market.
— CryptoWhale (@CryptoWhale) April 5, 2022
One of the respondents stated that the partnership might be part of the SEC’s plan to exit the XRP lawsuit. A different Twitter user dismissed the claim saying the CFTC views XRP as a commodity.
One of the implications of the SEC-CFTC collaboration is that they will need to be aligned in their opinions about the Ripple lawsuit. If the SEC sides with the CFTC on the XRP, then that would likely mean the end of the lawsuit.
But what’s the conclusion
Well, Gensler provided clarity on the regulatory approach to the crypto market by noting the three main focus areas. They include cryptocurrency exchanges, crypto custody, and platforms that list crypto tokens and crypto commodity tokens.
The regulatory focus seems to take the target away from digital currencies. However, the plan to clamp down on crypto access points might pave way for stringent measures and surveillance on crypto-related transactions.
Source: https://ambcrypto.com/the-ripple-connection-in-genslers-plan-to-collaborate-with-cftc-on-crypto-regulation/