SEC Is Now Considering Excluding Crypto Companies From Some Securities Laws

SEC Is Now Considering Excluding Crypto Companies From Some Securities Laws

Gary Gensler, the chairman of the United States Securities and Exchange Commission, stated in an interview that the organization may think about exempting cryptocurrency firms from some securities regulations.

In an effort to control the cryptocurrency market, the United States Securities and Exchange Commission is debating whether to eliminate some regulations. Gary Gensler stated as much in a July 15 interview with Yahoo Finance.

The SEC is specifically thinking about exempting cryptocurrency firms from several securities requirements.

The exception is intended to convince more cryptocurrency businesses to generally comply with rules. While not mentioning any specific names, Gensler emphasized that a number of cryptocurrency firms were operating outside of compliance requirements.

Gensler is not, however, acting in an unpleasant manner. Instead, he wants to promote conversation and interact with cryptocurrency businesses. The SEC Chair remarked:

“There’s a potential path forward. I’ve said to the industry, to the lending platforms, to the trading platforms: ‘Come in, talk to us.”

In any case, the SEC is considering providing a more specific set of regulations for the cryptocurrency market, which may be advantageous for the industry. The crypto market has, for the most part, also demonstrated a willingness to cooperate with legal authorities and adhere to regulations.

In any case, it’s possible that compliance soon won’t be an option. Authorities from all around the world, including those in the United States, are stepping up their efforts to crack down on the industry.

According to Gensler, Congress may need to take action in order to maintain financial stability with regard to stablecoins. Stablecoins and money market funds were also compared by the chair. In an effort to regulate stablecoins similarly to money market funds, Gensler has flirted with the idea.

“A lot of these tokens also have attributes similar to money market funds,” said Gensler. “They have taken money from the public and then the public, in the way they use them, they’re getting yields or rewards… on these stablecoins.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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