Securities and Exchange Commission Chairman Gary Gensler worries that a new bill to regulate cryptocurrencies in the US could “undermine” current traditional finance market rules.
Last week, Senators Cynthia Lummis and Kirsten Gillibrand introduced a bill to regulate digital assets, which implies their full inclusion in the US financial system. The main idea traced in the bill is that the rules that apply to gold, stocks and securities should not apply to cryptocurrencies. This bill was supported by many politicians and industry participants.
However, in a recent speech at the Wall Street Journal CFO Summit, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler commented introduced a bill, expressing concern that it could mess up the traditional finance sector. Gensler believes that cryptocurrencies should be treated the same as traditional banking and financial markets.
“We don’t want to violate the protections that apply to the $100 trillion capital market. Digital assets are being offered to the public, which hopes to make a profit in the future. There are characteristics of an investment contract here, therefore, cryptocurrencies should be regulated according to the rules applied to securities,” he said.
Gensler strongly advocates for the SEC to oversee cryptocurrencies rather than the U.S. Commodity Futures Trading Commission (CFTC), which prefers to classify crypto assets as commodities. Therefore, Gensler’s reaction to the bill was quite expected. Ripple’s legal counsel Stuart Alderoty recently criticized the SEC for deliberately delaying legal proceedings with the company in order to further “destroy” cryptocurrency firms.
Source: Bits
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