The heads of the CFTC and SEC want to expand the powers to control cryptocurrencies

The heads of the CFTC and SEC are both trying to expand their powers in crypto asset management as we will take a deeper look at it in today’s crypto news.

The incumbent CFTC chairman Rostin Behnam has called on the Senate Committee to expand the powers of the overregulator for cryptocurrencies. Meanwhile, SEC chairman Gary Gensler began campaigning for more regulatory scrutiny over stablecoins, days after reports surfaced that the Treasury Department would mandate the Securities and Exchange Commission and the exchange would be responsible for regulating cryptocurrencies, which Sister agency that wants to perform is the main player in this field for the entire crypto sector.

Rostin Behnam, acting chairman of the Commodity Futures Trading Committee and candidate for President Biden, has asked the Senate Committee on Agriculture, Forestry and Food to give the CFTC more powers to regulate the digital asset sector. Appeared before the committee during a confirmatory hearing and Behnam even stated that the agency’s enforcement actions against BitMex and Tether show the agency has everything it needs, but added that it did so because of the 2.6 trillion cryptocurrency US dollars just the tip of the iceberg is market capitalization. which it classifies as a commodity that can be traded on stock exchanges or as an underlying commodity.

“I think it is important that this committee… consider extending the jurisdiction of the CFTC. “I think it is extremely important to have a senior cop in tact. And the CFTC is certainly ready to do so if it so wishes. “

While he noted that this will certainly mark the beginning of his role as a derivatives regulator, he said that the growth of the sector and the risks to investors and financial stability are most important. In addition, SEC chairman Gary Gensler campaigned with the Treasury Department and the Financial Markets Working Group to gain more authority over stablecoins, digital assets tied to fiat. Wanting to make it clear that the SEC has the authority to oversee tokens in investment transactions, Gensler went on to say that the Treasury Department stands ready for the SEC to lead the stablecoin market while the CFTC also has a role to play. .

The heads of the CFTC and SEC are the main regulators in the crypto space, with both roles overlapping. The latter company is responsible for regulating the trading of securities that change with expectations of future returns, but refuses to classify BTC or ETH as the two largest assets by market capitalization as securities. The CFTC has referred to BTC as a commodity since 2015, but by no means has the authority to regulate cryptocurrencies. CFTC Commissioner Dawn DeBerry Stump said the agency is not responsible for regulating raw materials, but regulating derivatives based on those raw materials. Stump wrote:

“For several years now, the CFTC has been actively using its broader enforcement agency to prevent tampering and fraud with digital cash holdings, even though the CFTC does not regulate it.”