Saturday, June 15, 2024
HomeLaw & PoliticsSEC Chairman Gary Gensler recommends "One Rule Book" for cryptocurrencies to improve...

SEC Chairman Gary Gensler recommends “One Rule Book” for cryptocurrencies to improve trading regulations

The Financial Times revealed that SEC chairman Gary Gensler has urged for “one rule book” to regulate cryptocurrency on June 23. Gary Gensler is in contact with their counterparts at the Commodity Future Trading Commission (CFTC) to improve accessibility and safety for users trading in cryptocurrencies. However, he officially recommended “one rule book” for regulating cryptocurrencies on June 24.

SEC chairman Gary Gensler stated:

“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.”

According to Gensler, a “memorandum of understanding” is being drafted that would require the SEC to transmit details on cryptocurrencies that resemble commodities to the CFTC. He remarked that the SEC will be responsible for securities holdings, whereas the CFTC will look over commodity and financial derivatives.

The SEC chairman emphasised that the new regulation should safeguard investors from fraud, front-running, as well as exploitation, and provide clarity over orders.

The SEC Chair also added:

“By getting that market integrity envelope, one rule book on an exchange will really help the public. If this industry is going to take any path forward, it will build some better trust in these markets.”

Gary Gensler’s suggestion comes shortly after US Senators Cynthia Lummis and Kirsten Gillibrand presented legislation in front of the US Congress that would strengthen the CTFC’s regulatory authority over digital assets. The bill assumes that almost all cryptocurrencies are commodities instead of securities and should come under the regulation of the CTFC.

Typically, CTFC has concentrated on commodity derivatives such as options and futures instead of actual products. At a subsequent event, Gensler refused to respond to the proposal but cautioned against undercutting existing safeguards in a “$100 trillion capital market.”

Read More:

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

six − one =

- Advertisment -

Most Popular