The SEC has been in discussions with other financial regulators, including the Commodity Futures Trading Commission (CFTC), to work to provide greater regulation of the cryptocurrency space.
According to the Financial Times, the Securities and Exchange Commission chair, Gary Gensler, is in the early stages of a formal deal whereby cryptocurrency regulation is created and enforced by a co-ordinated approach that involves multiple agencies.
Gensler brought up one strategy that would see the markets regulated with a “one rule book”. He noted,“If this industry is going to take any path forward, it will build some better trust in these markets”
He added:
“I’m talking about one rule book on the exchange that protects all trading regardless of the pair — [be it] a security token versus security token, security token versus commodity token, commodity token versus commodity token” to protect investors against fraud, front-running, manipulation as well as providing transparency over order books.”
This development follows comments from the CFTC arguing that they are the only U.S. regulatory body that has experience regulating markets for Bitcoin and crypto. The CFTC commissioner, Summer Mersinger, commented on the matter during the Reuters Commodities Trading USA conference last week:
“You’re seeing the industry coalesce around the CFTC becoming the primary regulator. We’re still a strong regulator but our registrants have a lot of flexibility. They have been very interested in that approach versus the top-down way of some other financial regulators”
While the two agencies, may indeed be forced to come together to regulate and oversee the many thousands of cryptocurrencies on the market, Cardano founder, Charles Hoskinson has made a proposal that would see software developers handling compliance matters.
Hoskinson was called in to provide testimony to Congress, noting during his testimony that cryptocurrencies have the ability to carry out much of this regulatory work automatically, proposing a “self-certification system” that automatically monitors compliance.
The regulation of the cryptocurrency markets has been a pressing issue for regulators across the globe, with greater emphasis on regulation during the crypto winter.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/06/gensler-proposes-working-together-financial-regulators-one-rule-book