Speaking at the Wall Street Journal's <a href="https://cfonetwork.wsj.com/" target="_blank" rel="nofollow noopener">CFO Network Summit</a>, Securities and Exchange Commission (SEC) Chairman Gary Gensler said the recently proposed crypto bill in the United States could undermine the present legal framework for broader capital markets, according to experts. He added that many cryptocurrency companies are releasing tokens categorized as securities, while the Securities and Exchange Commission should regulate services like offering a payout for staking. He said,
<blockquote><em>"We don't want to undermine the protections we have in a US$100 trillion capital market," </em>

<em>"Like behaviors should have like treatment."</em></blockquote>
https://twitter.com/WSJ/status/1536760747526705157

&nbsp;
<h2>Gensler is Unconvinced</h2>
The Responsible Financial Innovation Act classifies decentralized cryptocurrencies as commodities and places them under the Commodity Futures Trading Commission (CFTC) jurisdiction. Gensler is unconvinced that tokens traded on cryptocurrency exchanges aren't securities, and the SEC isn't looking to expand its authority.
<h2>Crypto Loan Platforms</h2>
During the summit, he mentioned the recent BlockFi settlement, claiming that the <a href="https://www.cryptoknowmics.com/news/grayscale-hires-obamas-former-sc-lawyer-for-the-sec-lawsuit/" target="_blank" rel="noopener">SEC</a> determined that the high-yield offers were unregistered securities in that case. According to Gensler, today's crypto loan platforms offer rates as high as 17%. While this appeals to the general population, it's unclear what lies behind the ability to realize those profits. The SEC will try to find similar paths with other lending platforms and exchanges that could potentially list unregistered securities on their platforms, according to Gensler. BlockFi's settlement has turned into a path toward registration. Gensler said the SEC would do its best to find similar ways with other lending platforms and exchanges that could potentially list unregistered securities on their platforms.

US Crypto Bill Could Undermine Market Protections: SEC, Gensler

Speaking at the Wall Street Journal's CFO Network Summit, Securities and Exchange Commission (SEC) Chairman Gary Gensler said the recently proposed US crypto bill could undermine the present legal framework for broader capital markets.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

US Crypto Bill Could Undermine Market Protections: SEC, Gensler

Top Picks