U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has reportedly proposed “one rule book” for the regulation of crypto assets.” If this industry goes down some path, it will build some better confidence in these markets,” Gensler said.
SEC Chair Calls One Rulebook for Crypto
SEC Chairman Gary Gensler has proposed “one rulebook” for the regulation of crypto, the Financial Times reported Friday. He is considering entering into agreements with other financial regulators, including the Commodity Futures Trading Commission (CFTC), to avoid gaps in oversight of the crypto sector. He told the publication.
I am talking about one rulebook for exchanges.
The SEC Commissioner elaborated that the rule should provide transparency in the order book as well as protect investors from fraud, front running, and manipulation.
The rulebook “applies to all transactions regardless of whether they are security token-to-security token, security token-to-commodity token, or commodity token-to-commodity token pairs,” Gensler explained.
The SEC boss revealed that he is working on a “memorandum of understanding” with his counterparts at the CFTC. This would be a formal arrangement to ensure that transactions in digital assets have appropriate safeguards and transparency. He explained that if a commodity token is listed on a platform supervised by a securities regulator, the SEC will “send that information to the CFTC.”
By encompassing the integrity of the market, one rulebook of exchanges would really help the public. If the industry moves forward in any way, it will build better confidence in these markets.
U.S. Senators Kirsten Gillibrand and Cynthia Lummis recently proposed a framework to expand CFTC oversight of the crypto sector.
Last week, Gensler warned against “too good to be true” crypto products. He also recently warned that crypto exchanges often trade against their customers. In the wake of the collapse of cryptocurrency Terra (LUNA) and Stable Coin Terrausd (UST), the SEC chairman warned investors that many tokens will fail.
Gensler has been criticized for taking an enforcement-centric approach to regulating crypto assets; SEC Commissioner Hester Peirce said in May that the securities watchdog dropped the ball on crypto regulation and there are long-term consequences.
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