According to Intercontinental Exchange Inc (ICE) CEO Jeffrey Sprecher and U.S. Senator Elizabeth Warren, cryptocurrencies will also be regulated like securities. The new focus on the regulation of cryptocurrencies like securities comes after the FTX exchange wiped billions of dollars from the market, throwing clients’ funds into a state of uncertainty.
Sprecher gave a speech at the Financial Services Conference organized by Goldman Sachs Group Inc on November 6th. ICE CEO made statements that cryptocurrencies will be regulated like securities. Sprecher underlined that with the said regulation, consumers will be protected and they will be under the regulatory supervision of central stock exchanges and brokers.
“What does it mean? This greater transparency means client funds will be secure. In addition, the broker’s role as the financial expert trading on its behalf will be overseen and with it exchanges will be kept separate from brokers.”
Sprecher also added that no new regulation is necessary for cryptoassets as there is an existing legal framework for securities.
U.S. Senator Elizabeth Warren, known for her skepticism towards crypto, is working on a new bill that will give her and Securities and Exchange Commission (SEC) Chair Gary Gensler the majority of regulatory power in the crypto space. According to the news source’s report, the bill Warren is working on is still in its infancy. But according to the reports, the law aims to cover a range of issues, including taxation, regulation, national security and climate. Although specific details about the bill have not been disclosed, Warren’s spokesman, Alex Sarabia, noted that he is awaiting assistance from the SEC. Sarabia made the following statements:
“Elizabeth Warren works on crypto regulations and believes that financial regulators, including the SEC, have a large audience to suppress crypto fraud and money laundering.”