SEC Chairman Wants Deal With CFTC to Regulate Cryptocurrencies2 min read
US Securities and Exchange Commission (SEC) chairman Gary Gensler wants to regulate the BTC In the USA. He announced that he sought formal cooperation between US financial agencies.
Thus, according to him, only with the collaboration of both will it be possible to regulate cryptocurrencies effectively.
“So that bad actors don’t make use of regulatory loopholes and perpetrate fraud and manipulation,” he said.
To that end, the SEC chairman said he was working on a Memorandum of Understanding (MoU) between the SEC and the CFTC. Thus, the aim is to fill in possible regulatory gaps and create a strong law for cryptos in the US.
He made these remarks against the proposed bipartisan bill introduced in the US Senate. The bill is signed by US Senators Cynthia Lummis and Kirsten Gillibrand and was introduced on June 7.
So the SEC has been aggressively lobbying to bring digital assets under its purview. The argument is that cryptocurrencies are securities and not commodities.
Crypto Regulation in the US
Thus, Gensler has already stated that cryptocurrencies are securities and the SEC is justified in seeking control.
“These tokens are being offered to the public and the public looks forward to a better future. This is the characteristic of an investment contract,” she explained.
Thus, Rostin Behnam, who took over as chairman of the CFTC in January 2022, on the other hand praised the bill.
“It’s a very good job that distinguishes digital tokens between bonds and commodities,” he said.
Speaking at an event on June 14, Gary Gensler warned people that some DeFi platforms are scams.
Thus, according to him, those who offer a return of 4.5% to 7% on DeFi protocols will, possibly, go bankrupt.
“It’s too good to be true,” he said.
So, recently corroborating Gensler, Celsius, which offered 17% APY, was forced to freeze customer deposits.
“How does one offer (such a large percentage of returns) in the market today?” noted the chairman of the SEC.