SEC Chief Gary Gensler Backs CFTC Oversight For Non-Security Cryptos

SEC Chief Gary Gensler Backs CFTC Oversight For Non-Security Cryptos

Summary:

Gary Gensler supports the Commodity Futures Trading Commission having more regulatory oversight over non-security cryptocurrencies.The CFTC has asked Congress to pass laws that place Bitcoin and Ether under the agency’s purview.The SEC chief signaled his backing for the move during an industry conference on Thursday.Gensler reaffirmed that some altcoins remain securities and must comply with SEC policies.The SEC currently has several probes into crypto companies like Coinbase and Ripple over possible security law violations.

Chair of the U.S. Securities and Exchange Commission, Gary Gensler, shared remarks in support of a bill aimed at furnishing the Commodity Futures Trading Commission with more regulatory powers over non-security cryptocurrencies.  

[DB] Gensler Supports CFTC Having Oversight of Bitcoin, Ether: WSJ

— db (@tier10k) September 8, 2022

WallStreetJournal reported that Gensler opined support for such legislature while speaking during an industry conference on Thursday. The SEC boss noted that his agency would not lose any regulatory might if Congress greenlights the proposal.

The CFTC led by Chairperson Rostin Behnam petitioned the U.S. Congress over a crypto law. Behnam’s agency asked that cash markets for non-security cryptocurrencies fall under the CFTC’s jurisdiction. 

According to the report, the CFTC has its eyes on regulations over the two largest digital currencies – Bitcoin (BTC) and Ether (ETH). Behnam’s watchdog also asked for funding and resources to deploy extra oversight where necessary.

CFTC Chairperson Rostin Behnam (Source: REUTERS/Elizabeth Frantz)

Gary Gensler Reaffirms SEC Regulations For Other Altcoins And Crypto Companies 

Although SEC Chief Gary Gensler supports an expansion of the CFTC’s purview, the former investment banker also shared familiar rhetoric regarding other altcoins and cryptocurrencies. Gensler reportedly noted that other cryptos feature securities traits and should align with SEC laws. 

Let’s ensure that we don’t inadvertently undermine securities laws underlying $100 trillion capital markets. The securities laws have made our capital markets the envy of the world.

On several occasions, the SEC Chief has called out crypto exchanges like Coinbase for flouting regulations and opined that such platforms should be registered under his agency. The SEC also has ongoing legal battles with crypto stakeholders like Ripple over what the agency claims are securities violations. 

SEC Chief Gary Gensler (Credit: J. Scott Applewhite)

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