US Securities and Exchange Commission (SEC) chairman Gary Gensler clears the organisation’s plan to practice regulatory oversight on the crypto market to safeguard investors from swindlers.
Moreover, Gensler says that the SEC and the Commodity Futures Trading Commission (CFTC) will work hand in hand to look after the working of crypto assets trading venues.
Worthnotingly, the US Securities and Exchange Commission and Commodity Futures Trading Commission (CFTC) are one of the two most capable financial organisations in the United States. Since the SEC controls the securities market and the CFTC regulates commodities and derivatives, there are substantial differences in their responsibilities.
However, as per the SEC chairman, the agencies would work hand in hand in the near future to improve oversight of the crypto business, particularly crypto exchanges.
As per the government official the SEC is all set to register and control cryptocurrency exchange and strive to isolate asset custody to reduce risks for investors. As previously noted, Gensler :
“These crypto exchanges play vital roles similar to those of traditional regulated exchanges. Thus, investors should be safe in the same way.”
Notingly, the SEC chairman also compares crypto platforms to other exchange systems, which usually operate in the fixed income market. Nevertheless, in his opinion, the former are mostly used by institutional investors, whereas exchanges “have millions, if not tens of millions, of individual clients directly buying and selling on the platform without going through a broker.”
SEC chairman unveils the organisation’s plan to treat crypto exchanges more like retail exchanges. Stablecoins, according to the official, are a source of concern for the financial system. Many criminals, he claims, use the items in their nefarious activities.
Finally, Gensler emphasised that Washington’s regulators had efficiently supervised stock markets for a long period of time. “We ought to apply these same protections in the crypto markets,” he said, expressing hope that the trend will continue. Let’s not jeopardise 90 years of securities legislation by introducing regulatory arbitrage or loopholes.”
