The SEC is collaborating with the CFTC on cryptocurrency regulation

Gary Gensler, chairman of the Securities and Exchange Commission (SEC), has stated that the securities regulator is collaborating with the Commodity Futures Trading Commission (CFTC) on cryptocurrency regulation. Furthermore, he stated that the SEC is “trying to work with various crypto platforms, exchanges, and lending platforms” to ensure investor protection.

Gary Gensler, Chair of the Securities and Exchange Commission, on Crypto Regulation

In an interview this week, SEC Chairman Gary Gensler discussed cryptocurrency regulation. “We do have a broad agenda,” he said, “and crypto is part of that agenda.”

In a specific comment on crypto regulation, the SEC chairman stated,

“The agency is really just looking out for investors,” emphasizing that “many of these tokens have the characteristics of securities.” “They are raising money from the public,” he continued, “and the public is anticipating profits based on the efforts of others.”

We brought a number of actions, according to Gensler. “If you’re a platform and you have 75, 100, or 5,000 tokens on the platform, the chances are that a number of them, and possibly many of them, are what’s called a security,” Gensler stressed.

According to a recent report, the SEC has taken at least 97 enforcement actions against crypto companies and individuals so far. Gensler has also stated that cryptocurrency is one of the SEC’s top priorities.

“The SEC is going to try to pursue investor protection, and if that means bringing more enforcement actions, we’ll do that,” said the SEC chairman. However, it would be preferable if these platforms came in, collaborated with us, and were subject to securities law.”

“The laws are pretty clear as laid out in the 1930s,” he insisted, adding that “we have the ability to work with these exchanges using various authorities” to tailor some of the existing rules for the crypto industry. He admitted that crypto platforms do not function in the same way that traditional exchanges do.

In addition, the SEC chairman stated that “it would be beneficial to work with Congress on some things.” Nonetheless, he stated that “unless Congress says otherwise, we must ensure investor protection in this space.” Gensler went on:

We will collaborate with the Commodity Futures Trading Commission (CFTC) in areas where commodity tokens exist. While many of these are securities, others may fall under their purview. We collaborate as two federal agencies.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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