U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has reportedly proposed “a rule book” for regulating crypto assets. “If the industry is going to move forward, it’s going to build some better trust in these markets,” Gensler said.
SEC chairman calls for a crypto rulebook
SEC Chairman Gary Gensler has proposed “a rule book” for regulating cryptocurrencies, the Financial Times reported on Friday. He is seeking an agreement with other financial regulators, including the Commodity Futures Trading Commission (CFTC), to avoid a loophole in the regulation of the crypto industry. He told the publication:
I’m talking about a rule book about exchanges.
In addition to providing order book transparency, the rule should protect investors from fraud, front-running and manipulation, the SEC chief detailed.
The rulebook will apply to “all transactions, regardless of currency pair— [be it] Security tokens versus security tokens, security tokens versus commodity tokens, commodity tokens versus commodity tokens,” Gensler described.
The SEC chief revealed that he is in the process of signing a “memorandum of understanding” with his CFTC counterparts, which will be a formal agreement to ensure adequate security and transparency in digital asset transactions. He explained that if the commodity token were to be listed on a platform regulated by the securities regulator, the SEC would “send that information to the CFTC.”
Gensler believes that:
By getting the market integrity envelope, a rule book on exchanges will really help the public. If the industry is going to move forward, it will build some better trust in these markets.
U.S. Senators Kirsten Gillibrand and Cynthia Lummis recently proposed a framework that would expand CFTC oversight of the crypto industry.
Last week, Gensler warn “Too good to be true” encryption product.He also recently warned that cryptocurrency exchanges often transact with clients. SEC chairman following collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST) warn Investors believe that many coins will fail.
Gensler for taking Law Enforcement-Centric Approach Regulate crypto assets. SEC Commissioner Hester Peirce said in May that securities regulators have Lose the ball Regarding cryptocurrency regulation, and there are long-term consequences.
What do you think of SEC Chairman Gary Gensler’s comments? Let us know in the comments section below.
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