Earlier Today, The Financial Times reported that the US Securities and Exchange Commission (SEC) Chair Gary Gensler, is seeking unanimity between SEC and the Commodity Futures Trading Commission’s (CFTC) to regulate crypto assets adequately by creating a rule book for all things crypto.
One single book to regulate crypto affairs
Considering the ongoing tussle between the SEC and CFTC over which agency will have regulatory control over cryptocurrencies trading, Gensler, SEC chair has called for a crypto rule book which he says should guide the industry and close regulatory gaps.
Gensler opined that the single rule book is required so that bad actors don’t exploit the current regulatory gaps and perpetrate frauds and manipulations. Frauds and manipulations are quite prevalent in the crypto space and some have pinned this on lack of regulation.
I’m talking about one rule book on the exchange that protects all trading regardless of the pair — [be it] a security token versus security token, security token versus commodity token, commodity token versus commodity token, Gensler said.
Accordingly, the SEC Chair said he was working on a Memorandum of Understanding (MoU) between SEC and CFTC that will bridge potential regulatory gaps. The SEC sees cryptocurrencies as securities while The CFTC views them as commodities like gold.
Two U.S. senators introduce crypto legislation aimed at taming the “Wild west”
According to CNBC, Earlier this month, Sen. Gillibrand, a Democrat from New York who sits on the Senate Agriculture Committee, and Sen.Lummis, a first-term Republican from Wyoming on the Banking Committee, introduced legislation to create a regulatory framework for the crypto markets.
The bill will empower the Commodity Futures Trading Commission to officiate in the emerging industry, due to the fact that it classifies digital assets as commodities like wheat or oil. This classification is within the jurisdiction of the CFTC, unlike the SEC which policies securities.
The senators’ referred to the bill as a,
landmark bipartisan legislation that will create a complete regulatory framework for digital assets that encourages responsible financial innovation, flexibility, transparency and robust consumer protections while integrating digital assets into existing law.
The most striking part of the legislation is its definition of the majority of the digital assets available to American investors and consumers. The bill dubbed assets and digital currencies as “ancillary assets,”.