[ad_1]
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has stressed the importance of bringing “intermediaries and issuers of crypto securities” into compliance. Additionally, the US Treasury Department’s Financial Stability Oversight Council (FSOC) has recommended that regulators continue to “enforce existing rules and regulations applicable to the crypto-asset ecosystem.”
SEC Chairman Gensler on Crypto Regulation
SEC Chairman Gary Gensler spoke about crypto regulation Friday in his remarks to the US Treasury Department’s Financial Stability Oversight Council (FSOC). gensler said:
Nothing about the crypto markets is inconsistent with securities laws. Yet the risks of this speculative, volatile market and what I consider to be a largely non-compliant market put investors at risk.
“That’s why bringing intermediaries and issuers of cryptocurrency tokens into compliance is so important,” he said.
“While risks from the crypto markets do not generally appear to have spilled over to the traditional financial sector to date, we must remain vigilant to guard against this possibility,” the SEC chief concluded.
Gensler and the SEC have been criticized for not preventing the collapse of crypto exchange FTX given that SEC staff, including the chairman himself, had several meetings with the former CEO of FTX , Sam Bankman-Fried (SBF). The securities watchdog finally charged Bankman-Fried and his crypto exchange with fraud last week after his arrest in the Bahamas. US Congressman Tom Emmer called on Gensler to testify before Congress about the cost of his crypto regulatory failures.
Regulatory Recommendations from the Financial Stability Oversight Council for Crypto
The Financial Stability Supervisory Board also unanimously approved its 2022 annual report on Friday. In his remarks, Gensler said he supports the FSOC report, including its recommendations. According to the US Treasury Department report announcement:
The Council emphasizes the importance for agencies to continue to enforce existing rules and regulations applicable to the crypto-asset ecosystem.
Noting that the Board identified gaps in the regulation of crypto activities, Treasury explained that to address these gaps, the Board recommended “the enactment of legislation providing for the regulatory authority of federal financial regulators in the market at counting crypto-assets that are not securities. In addition, the Treasury noted: “Steps should be taken to combat regulatory arbitrage, as crypto-asset entities offer services similar to traditional financial institutions but do not have a coherent or comprehensive regulatory framework.”
Last week, two U.S. senators, including Elizabeth Warren (D-MA), introduced a bipartisan bill to regulate cryptocurrency. Their bill, titled the “Digital Asset Anti-Money Laundering Act,” is “the most direct attack on the personal freedom and privacy of cryptocurrency users and developers that we have ever seen,” according to the crypto advocates.
What do you think of SEC Chairman Gary Gensler’s comments and recommendations from the Financial Stability Oversight Board? Let us know in the comments section below.
Kevin Helms
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is provided for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
More popular newsIn case you missed it
|
Sources 2/ https://news.bitcoin.com/sec-chairman-says-important-to-regulate-crypto-issuers-and-intermediaries/ The mention sources can contact us to remove/changing this article |
[ad_2]