US Securities and Exchange Commission (SEC) Chairman Gary Gensler has outlined what to expect from securities regulators on crypto regulation. “We have strong powers in Congress to also use our waivers that allow us to customize investor protections,” he said.
Chairman Gensler highlights the SEC’s work on crypto regulation
SEC Chairman Gary Gensler outlined what to expect from his agency regarding U.S. crypto regulation in an interview with Yahoo Finance Live on Thursday. He was asked, “What can we expect from the SEC in the coming months in terms of crypto regulation?”
Gensler replied, “More broadly, the public would currently benefit from investor protection around these various service providers…the exchanges, the lending platforms, and the broker-dealers.” The SEC chief explained:
So at the SEC, we work in each of those three areas — exchanges, lending, and broker-dealers — and talk to industry participants about how they can achieve compliance or change some of that compliance.
Gensler stressed that he had repeatedly told crypto exchanges, trading platforms, and lending platforms, “Come in, talk to us.”
He explained that the SEC has the authority from Congress to change some rules to better protect investors, stating:
We have strong powers from Congress to also use our waivers, which allow us to customize investor protections.
He noted that securities regulators can even adjust disclosures for tokens themselves, adding that not all disclosures for someone issuing shares may apply to crypto issuers.
“The public benefits by knowing that they are being disclosed fully and fairly and that no one is lying to them… basic protections,” the SEC chief said.
Regarding what to expect from his agency on crypto regulation, Gensler further shared:
We also look at the tokens, the stablecoins and the non-stablecoins. Separately, we’re having discussions with banking regulators and with our friends and colleagues at the CFTC.
He reiterated that “Bitcoin is a non-security token,” adding that on non-security tokens, the SEC will send information to the Commodity Futures Trading Commission (CFTC) and “work together as best we can.” In June, Gensler said bitcoin is a commodity but would not comment on other crypto tokens, including ether (ETH).
The SEC chairman proposed “a rulebook” for regulating crypto tokens in May. He announced at the time that he was working with his colleagues at the CFTC on a memorandum of understanding, noting that it would be a formal agreement to ensure trading in digital assets provided adequate safeguards and transparency.
Following the collapse of cryptocurrency Terra (LUNA) and stablecoin Terrausd (UST), Gensler warned that many crypto tokens will fail. He also warned investors about “too good to be true” crypto products after crypto lender Celsius Network froze withdrawals.
The SEC is currently investigating Celsius over its decision to freeze accounts. The crypto firm filed for bankruptcy protection last week. Securities regulators are also investigating Do Kwon and UST’s Terraform Labs.
Tags in this story Bitcoin Non-Security, Crypto Regulation, Cryptocurrency Regulation, Gary Gensler, Gary Gensler Crypto, Gary Gensler Crypto Regulation, Non-Security Tokens, SEC, sec cftc, sec Chair, sec Chairman, sec Crypto Regulation
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Kevin Helms
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