SEC Chair wants robust crypto regulatory regime for the US
It’s been a week since the SEC Chairman Jay Clayton gave a speech at the University of Pennsylvania. For those who have been following the cryptosphere news, it was no surprise that he expressed his disapproval of ICOs. He went as far as even calling for a ban on “all” ICOs. A few days later, however, Clayton made a statement indicating that his views on ICOs have evolved. In an interview with CNBC, he indicated that he now feels there is a need for a robust crypto regulatory regime in the United States.
The U.S. Securities and Exchange Commission (SEC) has become the first agency to assign a chief cryptocurrency officer, as the agency heads into a potentially pivotal year for the nascent asset class.
The CTO of Coinbase, Balaji Srinivasan, has called for a robust crypto regulatory regime for the US in light of the current SEC investigation into crypto-related financial institutions. “In our view, the U.S. is ill-prepared to regulate cryptocurrencies,” Srinivasan said in an interview. “The government hasn’t really been doing anything with crypto until just recently. They haven’t issued regulations. They’re not really doing anything with respect to exchanges, with respect to custody. These are all issues that need to be addressed.”
The head of the United States Securities and Exchange Commission, Gary Gensler, is said to want clear rules for the country’s crypto market.
In a Bloomberg interview, Gensler emphasized the SEC’s intention to put protections in place for crypto investors in the US, saying, “If someone wants to speculate, that’s their decision, but we have a responsibility as a country to protect those investors from fraud.”
The SEC chairman listed seven crypto-related policy reforms that the agency is presently reviewing. Token offers, decentralized finance (DeFi), and stablecoins are among the topics covered. Custody, exchange-traded funds (ETFs), and lending platforms are further areas of emphasis for Gensler’s SEC.
Crypto exchange rules, according to Gensler, may be the simplest approach to establish SEC supervision of the crypto trading industry. Decentralized exchanges, as well as other DeFi participants, may be affected by such legal regulations.
The crypto loan industry, according to Gensler, is also on the SEC’s radar. Indeed, as Cointelegraph has highlighted, the flurry of state regulatory measures against crypto lending behemoth BlockFi may be a harbinger of future SEC action in the sector.
The interest-rate advertising element of these businesses, as well as the pooling of digital assets to provide returns, serve as entry gates for the SEC to apply rules similar to those imposed on mutual funds, according to Gensler.
Senator Elizabeth Warren has questioned SEC Chair Jay Clayton about the absence of crypto investment safety.
While Gensler is enthusiastic about bringing regulatory clarity to the US crypto industry, these steps are not currently on the SEC’s schedule.
With almost 50 non-crypto-related policy issues on the Commission’s plate, crypto rules may be put on hold for the time being. Indeed, because to concerns about environmental, social, and corporate governance, as well as meme stocks, some market analysts believe a Bitcoin ETF in 2021 is improbable.
Meanwhile, members of Congress, notably Senator Elizabeth Warren, are pushing for more stringent cryptocurrency regulation.
On Wednesday, SEC Chair Jay Clayton wrote in a Wall Street Journal op-ed that he wants to see a robust regulatory regime for cryptocurrencies, and will be working with the SEC to create a framework to ensure that the digital assets being traded in the US are not used for illicit purposes. He wrote that the price of Bitcoin has surged to the point that it could become a mainstream payment system, but that it still has some kinks that need to be ironed out. “Given the price surge that we have seen, I believe that there is a heightened risk of fraud, market manipulation, and manipulation of the prices of virtual currencies generally,” he wrote. “I expect the SEC to issue a number of new or updated investor alerts as a result of. Read more about crypto regulations 2021 and let us know what you think.
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