Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), repeated the agency’s plans to increase regulatory control of the cryptocurrency market in order to safeguard investors from fraud.
He also stated that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will collaborate to oversee the activities of digital asset trading venues.
The two organizations are the most powerful financial watchdogs in the United States. However, because the SEC controls the securities market and the CFTC regulates commodities and derivatives, there are substantial contrasts in their responsibilities. However, according to Gary Gensler , the agencies would work together in the near future to improve oversight of the crypto business, particularly digital asset platforms.
The SEC plans to register and regulate cryptocurrency exchanges, as well as strive to separate asset custody to reduce risks for investors, according to a government official. As previously noted, Gensler called for further safeguards for people dealing with the asset class:
“These crypto platforms play roles similar to those of traditional regulated exchanges.”
” Thus, investors should be protected in the same way.”
He also linked crypto platforms to alternative trading systems, which are employed in the stock and bond markets. However, in his opinion, the former are mostly used by institutional investors, whereas exchanges “have millions, if not tens of millions, of individual clients directly buying and selling on the platform without going through a broker.”
According to Gensler, the SEC would look for methods to treat bitcoin trading venues more like retail exchanges.
Stablecoins, according to the official, are a source of concern for the financial system. Many criminals, he claims, use the items in their nefarious activities.
Finally, Gensler stated that Washington’s regulators had effectively regulated financial markets for a long time. He expressed optimism that the crypto sector will follow suit.
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