The chairman of the US Securities and Exchange Commission (SEC), speaking before the US Department of the Treasury’s Financial Stability Oversight Board (FSOC), said that the cryptocurrency market could well operate under the rules that apply to the stock market.
Gary Gensler emphasized that he believes that digital assets are too volatile and speculative, which puts investors at great risk:
“It is important that cryptocurrency issuers, as well as other intermediaries, operate in accordance with clear rules. While the industry generally does not pose a threat to the traditional financial sector, we must be vigilant to prevent this from happening.”
Gensler noted that the FSOC was able to effectively identify gaps in the regulation of the crypto industry and take into account the recommendations that the council published in its annual report. The FSOC has recommended passing bills that would give federal financial regulators the power to oversee the spot market for cryptoassets, where securities do not appear.
The official reiterated calls for regulation of arbitrage as companies offering crypto services similar to traditional financial institutions are not subject to the same regulation.
Previously, the SEC approved nine new blockchain-enabled funds from WisdomTree. None of the funds are reported to track crypto assets on their own.
Source: Bits
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