SEC Chairman Proposes “Rule Book” On Cryptocurrency Regulations
The United States Securities and Exchange Commission (SEC) has been paying close attention to crypto lately. The SEC Chairman, Gary Gensler, is proposing a “rule book” that regulates cryptocurrencies.
SEC Chairman Gary Gensler has proposed a “rule book” for crypto regulation. He is seeking to reach a consensus with other financial regulators, including the US Commodity Futures Trading Commission (CFTC), to avoid loopholes in oversight of the nascent sector. In an interview, he confirmed:
“I’m talking about one rule book on the exchange.”
According to the SEC chairman, the rule protects investors against fraud, money laundering, and manipulation, in addition to providing order book transparency.
The rulebook will apply to “all transactions regardless of currency pair – be it security tokens versus security tokens, security tokens versus commodity tokens, commodity tokens versus commodity tokens.”
“If this industry is going to take any path forward, it will build some better trust in these markets,” said Gensler.
U.S. Senators Kirsten Gillibrand and Cynthia Lummis recently proposed a framework to expand the CFTC’s oversight of the cryptocurrency sector.
Last week, Gensler warned about crypto products that are “too good to be true.” Recently, he also warned that exchanges often trade against their customers. After LUNA and stablecoin UST collapsed, the SEC chairman reminded investors that a lot of tokens will fail.
Gensler has been criticized for taking an enforcement-focused approach to crypto regulation. SEC Commissioner Hester Peirce said in May that the securities watchdog ignored crypto regulation which led to long-term consequences.
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