Chairman of the U.S. Securities and Exchange Commission (SEC) ), Gary Gensler stressed the importance of enforcing “intermediaries and issuers of cryptocurrencies” to comply. Additionally, the U.S. Department of the Treasury’s Financial Stability Oversight Council (FSOC) has recommended that regulators continue to “enforce existing rules and regulations applicable to the crypto asset ecosystem.”
His SEC Chairman Gensler on Crypto Regulation
SEC Chairman Gary Gensler said Friday at his Financial Stability Oversight Council (FSOC) at the U.S. Treasury Department: We talked about crypto regulation. Gensler said:
The virtual currency market is not incompatible with securities laws. However, the risks from this speculative and volatile market put investors at risk.
“This is why it is so important to ensure that intermediaries and issuers of cryptocurrency tokens are compliant,” he stressed.
“Risks from the cryptocurrency market do not appear to extend to the traditional financial sector, but vigilance must be exercised to prevent the possibility,” the SEC Commissioner concluded. rice field.
Gensler and his SEC said that given that his SEC staff, including the Chairman himself, had several meetings with his former FTX CEO, Sam Bankman-Fried (SBF). , has been criticized for failing to prevent the collapse of the virtual currency exchange FTX. Securities regulators charged Bankman-Fried and his cryptocurrency exchange with fraud last week after he was arrested in the Bahamas. US Congressman Tom Emer has asked Gensler to testify before Congress on the costs of crypto regulation failure.
Financial Stability Oversight Council’s Cryptocurrency Regulatory Recommendations
The Financial Stability Oversight Council also unanimously approved its 2022 Annual Report on Friday. In his remarks, Gensler said he supported the FSOC report, including its recommendations. According to a US Treasury Department report announcement:
The Council stresses the importance of agencies continuing to enforce existing rules and regulations that apply to the crypto ecosystem. increase.
Noting that the Council has identified gaps in the regulation of cryptocurrency activities, the Treasury Department has advised that the Council should “provide rulemaking to federal financial regulators” to address these gaps. I recommended the enactment of a law to give them powers.” A spot market for crypto assets that are not securities. In addition, the Treasury Department said:
Last week, her two US Senators, including Elizabeth Warren (D-Massachusetts), introduced a bipartisan bill on cryptocurrency regulation. According to crypto advocates, their bill, titled “Digital Asset Anti-Money Laundering Act,” is “the most direct attack yet on the personal freedoms and privacy of cryptocurrency users and developers.”
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