August 14, 2022

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The Securities and Exchange Commission (SEC) is seeking agreement for cryptocurrency to have regulation

June 24, 2022 | 10:30 am.

Gary GenslerChairman of the US Securities and Exchange Commission (SEQ), seeks to reach agreements with other financial agencies to prevent operators Cryptocurrency Escape organization in the United States.

In an interview with financial timesGensler stated that he is in talks with his counterparts at the Commodity Futures Trading Commission (CFTC) about formal agreement To ensure that cryptocurrency trading has proper safeguards and transparency.

His suggestion emerges from the efforts of the US authorities to Cryptocurrency monitoring They are drowning in Washington’s politics, which could reduce the SEC’s influence on digital assets.

Lawmakers on Capitol Hill rush to clarify what legal And who is responsible for oversight.

Historically, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) focused on different sides Financial markets rarely work together. The Securities and Exchange Commission primarily oversees the securities and derivatives of a commodity futures trading company; Cryptocurrencies will likely extend to both markets.

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Increase fines for actions

According to US government data compiled by cryptocurrency analytics firm Elliptic, fines Through enforcement actions are increasing.

Regulators have raised $3.35 billion in crypto enforcement actions since the arrival of Bitcoin In 2008, including $179.7 million in the first six months of this year, the Securities and Exchange Commission accounted for more than 70% of fines.

For his part, Gensler stated that he was working on a “memorandum of understanding” with the Commodity Futures Trading Commission, which he led from 2009 to 2013. The SEC has jurisdiction over the platforms that list tokens that are considered securities.

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The head of the authority added that if a Code that the product it represents is listed on a platform regulated by the Securities and Exchange Commission, the securities regulator will transmit that information to the CFTC.

I’m talking about the exchange’s rule book that protects all trades, regardless of pair, (whether) a security token versus another token of the same, or a security token versus a commodity token, to protect investors from fraud, as well as provide transparency in the order books

Gensler said.

Cryptocurrency market, affected in recent months

The cryptocurrency market has been hurt in recent months by the impact of lower prices. The Bitcoin It has fallen more than two-thirds from an all-time high of nearly $70,000 in November, as well as stock exchanges firing employees Some lending platforms have prevented clients from withdrawing assets.

Gensler was one of the organizers who asked for more Supervisor from cryptocurrency and urged the exchanges to discuss whether they should sign up with his agency.

By having this market integration envelope, the stock exchange rulebook will really help the public. If this industry is to take any way forward, it will build more confidence in these markets.

he added.

However, a bipartisan bill introduced by US Senators Kirsten Gillibrand and Cynthia Loomis proposed a crypto-regulatory framework that would expand the powers of the CFTC, based on the assumption that most digital assets are similar to cryptocurrencies. Basic Products instead of values.

Rustin Behnamwho was appointed chairman of the Commodity Futures Trading Commission in January, told financial times Earlier this year, there could be “hundreds, if not thousands” of tokens qualifying as commodities, including bitcoin and ether.

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He and Gensler declined to comment on whether expanding the CFTC’s jurisdiction over cryptocurrencies would create friction with the Securities and Exchange Commission or cause confusion.

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With information from the Financial Times