Cryptocurrency
Federal Agent Proposes “Rule Book” for US Cryptocurrency Regulation
US Securities and Exchange Commission (SEC) chairman Gary Gensler has proposed “a rulebook” for regulating digital assets. “If this industry is going to move forward, the rules can build better trust in these markets,” said Gensler.
The Financial Times reported on Friday (24) that Gensler is looking to strike deals with other financial regulatorsincluding the US Commodity Futures Trading Commission (CFTC), to avoid loopholes in oversight of the crypto sector, saying it is suggesting “a rulebook on the market.”
The SEC chairman elaborated that the rules would serve to protect investors against fraud, front-running, and market manipulation, in addition to providing transparency about transactions.. Gensler also claims that the same rules would apply for “all trades, regardless of pair.”
Gensler further revealed that is working on a “memorandum of understanding” with its contacts at the CFTCthis being a formal agreement to ensure that the trading of digital assets has adequate safeguards and transparency.
He explained that if a commodity token were listed on a platform overseen by the securities regulator, the SEC would “send that information to the CFTC,” and opined that “a rulebook on exchanges will really help the public because if this industry is going to move forward, the rules can build better trust in these markets.”
Gensler has been criticized for taking an approach centered on enforcing cryptocurrency regulation, but it is not the only one in the US government with this objective. Recently, Senators Kirsten Gillibrand and Cynthia Lummis also proposed a framework that would expand the CFTC’s oversight of the digital asset sector.
