In an interview with Yahoo Finance Live, Gary Gensler, Chairman of the SEC, explained what to expect from his agency regarding U.S. cryptocurrency
In an interview with Yahoo Finance Live, Gary Gensler, Chairman of the SEC, explained what to expect from his agency regarding U.S. cryptocurrency regulation. When asked what he expected from the SEC over the next months regarding the crypto regulatory front, Gensler answered: “What can we expect of the SEC in March?”
Gensler responded: “More broadly the public would benefit from investor protection surrounding these various service providers…the exchanges, lending platforms and the broker-dealers.” The SEC chief explained:
The SEC is working in all three of these areas – lending, exchanges and broker-dealers – and speaking to industry participants to discuss how to comply or modify existing compliance.
Gensler stated that he had repeatedly told cryptocurrency exchanges, trading platforms and lending platforms: “Come in, speak to us.”
He stated that Congress has given the SEC the power to amend certain rules in order to better protect investors.
Congress has strong authority to use exemptive powers that we can tailor for investor protection.
He pointed out that the securities watchdog can adjust the disclosures made for tokens, and that not all disclosures that are required for equities may apply to crypto-issuers.
The SEC boss stressed that the public benefits from knowing truthful and fair disclosure, and that someone isn’t lying to them… basic protection.
Gensler shared more details about what to expect from the agency regarding crypto regulation.
We also look at tokens, stablecoins and non-stablecoins. Separately, discussions are ongoing with the bank regulators as well as our colleagues and friends at the CFTC.
He stated that ‘Bitcoin’ is a non security token and that the SEC would send information to the Commodity Futures Trading Commission, (CFTC), and ‘collaborate the best we can’. Gensler stated that bitcoin was a commodity in June. However, he did not comment on any other crypto tokens such as ether ( or ETH).
In May, the SEC chair proposed a one rulebook for regulation of crypto tokens. At the time, he said that he was working on a memorandum with his counterparts from the CFTC. This would be a formal agreement to ensure that digital asset trading is transparent and secure.
Gensler stated that many cryptocurrency tokens would fail after the collapse of stablecoin terrausd and cryptocurrency terra (LUNA). Investors were also warned by Gensler about “too good to fail” crypto products following the freezing of withdrawals by crypto lender Celsius Network.
The SEC is currently investigating Celsius regarding its decision to block accounts. Last week, the crypto company filed for bankruptcy protection. The securities regulator is also looking into Do Kwon’s Terraform Labs, and UST.