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Despite the lack of clarity in the rules, the SEC chairman has reiterated that any attempt to create new laws will unsettle the status quo.
Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC) has revealed in his latest hearing with the House Appropriations Committee that the country has a law that is well suited for the crypto industry. As reported by The Block, Gensler said the current Securities law also applies to crypto entities and that there is no need for additional legislation.
“If Congress were to act, though I don’t think we need these authorities, not to undermine inadvertently through definitions of what’s in or out, or in essence allowing for conflicts that we don’t allow,” Gensler said.
Gary Gensler has led a very productive life working as a civil servant and while he is at the helm of affairs at the SEC, he has also served as the Chairman of the Commodity Futures Trading Commission (CFTC) in time past. Having a good knowledge of the operational and regulatory principles of both agencies, Gensler said the SEC alongside its overseers are in the best position to define what a security is.
“I think there is one agency – the Securities and Exchange Commission, overseen by two committees – the House Financial Services and Senate Banking, and the courts that define what a security is and not individual crypto exchanges selecting that,” Gensler later said.
The crypto ecosystem in the United States is a very unsettled one as industry leaders have continued to call out the SEC and lawmakers for the undefined laws governing the crypto ecosystem. Stakeholders are particularly furious with the SEC for the series of enforcement actions that has been introduced against Kraken Exchange, Paxos Trust, and even Coinbase Global Inc (NASDAQ: COIN) thus far this year.
The accusation is that the regulator does not provide clarity on what makes asset security with some of the crackdowns bound to lead to legal brawls.
SEC Chairman: Foreign Securities Trading Firms Need Registration
According to the SEC Chairman, any foreign securities trading platform needs to come under the registration of the American market.
“If you’re touching US investors, selling these tokens to US investors then you come under either the securities laws or the laws under the CFTC”, Gensler said.
Despite the lack of clarity in the rules, the SEC chairman has reiterated that any attempt to create new laws will unsettle the status quo.
“I think many of the legislative vehicles would if adopted, would undermine the securities remit,” he said.
Some pro-crypto US Senators including Sens. Kirsten Gillibrand, D-N.Y., and Cynthia Lummis, R-Wyo are working on a Bill that will change the entire landscape for crypto regulation as they look to pitch the CFTC to be the dominant regulator for the nascent industry.
While it remains unclear what the regulatory approach will be if this Bill scales through and becomes a law, for now, Gensler believes the industry has what it needs to come under the remit of the law.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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