Despite the lack of clarity in the rules, the SEC chairman has reiterated that any attempt to enact new laws will destabilize the status quo.
Gary Gensler, President of the United States Securities and Exchange Commission (SEC) in its latest hearing with the House Appropriations Committee has revealed that the country has a law which is suitable for the crypto industry. As informed of By The Block, Gensler said that current securities law applies to crypto entities as well and there is no need for additional legislation.
Gensler said, “If Congress were to act, though I don’t think we need these officers, to inadvertently see what is in or out, or in essence to allow conflicts that we don’t allow,” Gensler said.
Gary Gensler has led a very productive life working as a civil servant and while he is at the helm of affairs at the SEC, he has also served as the chairman. Commodity Futures Trading Commission (CFTC) in the past. Having a good knowledge of both agencies’ operational and regulatory principles, Gensler said the SEC is in the best position, along with its supervisors, to define what a security is.
“I think there is one agency – the Securities and Exchange Commission, overseen by two committees – the House Financial Services and Senate Banking, and courts that define what is a security and not select individual crypto exchanges,” Gensler said. said later.
The crypto ecosystem in the United States is a very volatile one as industry leaders continue to call on the SEC and lawmakers for undefined laws governing the crypto ecosystem. Stakeholders particularly angry with SEC for series of enforcement actions City: against Kraken Exchange, Paxos Trust and even Coinbase Global Inc (NASDAQ:COIN) so far this year.
The allegation is that the regulator does not provide clarity on what constitutes asset protection with some cracks bound to give rise to legal disputes.
SEC Chairman: Foreign securities trading firms required to register
According to the chairman of the SEC, any foreign securities trading platform needs to come under the registration of the US market.
“If you are touching US investors, selling these tokens to US investors then you are covered under either the securities laws or the laws under the CFTC”, Gensler said.
Despite the lack of clarity in the rules, the SEC chairman has reiterated that any attempt to enact new laws will destabilize the status quo.
“I think that if multiple legislative vehicles are adopted, that will reduce the securities remit,” he said.
Some pro-crypto US senators, including Sens. Kirsten Gillibrand, Dn.Y, and Cynthia Lummis, R-Wyo are working on a bill that will change the entire landscape for crypto regulation as they look to the CFTC to become the lead regulator. for the nascent industry.
While it’s unclear what the regulatory approach will be if this bill passes and becomes law, for now, Gensler believes the industry has what it takes to come to terms with the law.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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