U.S. SEC Chairman Calls Out Again, Suggests Crypto Regulatory Regime at Federal Level

Many cryptocurrencies are traded like assets and should fall under the purview of the SEC

The head of the U.S. Securities and Exchange Commission (SEC) has renewed his call for regulation of cryptocurrency trading.

U.S. SEC Chairman Calls Out Again, Suggests Crypto Regulatory Regime at Federal Level

During the Global Exchanges & FinTech virtual conference hosted by Piper Sandler, SEC Chairman Gary Gensler stated that a federal regulatory regime should be established for crypto trading to enhance investor protection.

“Crypto assets are primarily traded on exchanges, and the public should have an investor protection regime. We need a federal system to register and regulate them.”

U.S. SEC Chairman Calls Out Again, Suggests Crypto Regulatory Regime at Federal Level

Gensler, who has taught courses on blockchain and other financial technologies at MIT, said regulators need a mandate to oversee cryptocurrency exchanges, similar to stock and futures markets. He said many cryptocurrencies are traded like assets and should fall under the purview of the U.S. Securities and Exchange Commission.

The move comes after the SEC urged Congress in May to bring regulatory clarity to cryptocurrency trading platforms to prevent fraud and market manipulation.

In a recent CNBC interview, Gensler said crypto assets should have the same protections as stocks and commodities: “That’s something I’m very confident about. Investors don’t have the same protections as they do in the stock market or the commodity futures market …… Bitcoin and other cryptocurrencies don’t have those protections, they’re a speculative asset class.”

In fact, there have been cooperative discussions at the federal level in the U.S. about cryptocurrency regulation. This month, senior officials from three major federal banking regulators: the Office of the Comptroller of the Currency (OCC), led by Michael Hsu, the Federal Reserve and the Federal Deposit Insurance Corporation held their first cryptocurrency “sprint” regulatory group meeting. The IRS also added a crypto-related budget to its 2022 budget submission.

U.S. SEC Chairman Calls Out Again, Suggests Crypto Regulatory Regime at Federal Level

While no formal regulatory documents have been issued, it is clear that the U.S. is taking cryptocurrencies seriously.

Bitcoin and other cryptocurrencies have been booming since late last year. bitcoin topped $60,000 in April, only a month after the crypto market collapsed, with bitcoin falling through $30,000 at one point. Market participants attribute some of this to China’s strong censorship. Inner Mongolia, Xinjiang and Qinghai have introduced policies to crack down on crypto mining, and the three major exchanges have had their keywords blocked by Sina Weibo, but the crypto market is still heading into the sunlight under the double-sided attack of Chinese and U.S. regulation.

The small Central American country of Saldova announced the adoption of Bitcoin as legal tender, and its president plans to grant permanent residency to three Bitcoin providers.

The growing number of small countries embracing bitcoin and gathering sand into a tower is also a huge boost to the market.

Bitcoin has rebounded from a low of $30,000 the day before to near $36,000, up nearly 10% intraday, according to data from the Bitpush terminal.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/u-s-sec-chairman-calls-out-again-suggests-crypto-regulatory-regime-at-federal-level/
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