The US Securities and Exchange Commission (SEC) Chair Gary Gensler and the Commodity Futures Trading Commission’s (CFTC) are hammering out a formula for regulating cryptocurrencies which will be agreeable to everyone reports the Financial Times.
SEC Perfecting Single Rule Book For All Cryptocurrencies
The SEC is perfecting a rulebook which will seek to regulate all forms of crypto assets and also close the loopholes in the regulations. However there is a tussle going on between the SEC and CFTC as to which agency will have regulatory control over cryptocurrencies trading.
SEC Chair felt that all the chinks in the security must be covered to prevent the unscrupulous elements from exploiting these regulatory weak points to perpetuate frauds and manipulations.
Lack Of Regulations Helped Frauds To Be Effected
Some of these frauds in the past have been blamed on the lack of regulations.
Gensler said, “ I’m talking about one rule book on the exchange that protects all trading regardless of the pair — [be it] a security token versus security token, security token versus commodity token, commodity token versus commodity token,.”
Gensler the Financial Times revealed that SEC is perfecting a MOU which will smoothen the rough edges and bridge any foreseeable instances of regulatory gaps between SEC and CFTC. There is a difference in perception between about cryptocurrencies. While the SEC views cryptocurrencies as securities, the CFTC views them as commodities like gold.
Two U.S. Senators Bring Forth Bill To Tame Cryptocurrencies
Sen. Gellibrand, a Democrat from New York and Sen. Lummis, have brought a bill which seeks to regulate the hugely unregulated crypto sector. Sen. Gellibrand is a member of Senate Agriculture Committee while Sen. Lummis is with the Banking Committee.
The Bill seeks to authorize the Commodity Futures Trading Commission to manage in the emerging crypto industry. This is also logical because it designates digital assets as commodities like wheat or oil. This classification is within the jurisdiction of the CFTC, unlike the SEC which policies securities.
The bill will be landmark legislation and will help erect a complete framework in which the digital assets will be regulated. The bill seeks to bring the digital assets under the purview of the law but at the same time also seeks to promote responsible financial innovation, flexibility, transparency and robust consumer protections