SEC Chairman Gary Gensler has proposed a crypto rulebook to fill gaps in the oversight of US financial institutions. Arguing that many crypto assets are securities, Gary Gensler, on the other hand, continues to negotiate with the Commodity Futures Trading Commission (CFTC) to ensure hedging and transparency in crypto-asset trading.

In recent days, discussions have been going on in the US Congress about which government agency should play an active role in the control of cryptocurrencies. The cryptocurrency bill under discussion shows that the CFTC outweighs the regulation of cryptocurrencies. Because, in the draft law proposed by US senators Kirsten Gillibrand and Cynthia Lummis, it is emphasized that crypto assets are commodities rather than securities.

While the US SEC is the authorized body to oversee the securities and stock market sector, the CFTC carries out the supervisory activities of the derivatives markets. When we look at the structure and functioning of cryptocurrencies, it is seen that both sectors are covered.

The SEC Chairman Gensler

However, since the day he took office, Gary Gensler has argued that the regulation of cryptocurrencies and regulations regarding crypto platforms should be made by the SEC. The SEC Chair is currently negotiating a memorandum of understanding with the regulator to have a say in areas within the jurisdiction of the CFTC.

Lastly, speaking to the Financial Times, Gary Gensler claimed that by creating a single crypto rulebook, investors can be better protected against fraud and manipulation, creating a transparent trading environment.

CFTC Chairman Rostin Behnam, on the other hand, is of the opinion that most crypto assets, especially Bitcoin and Ethereum, are commodities and that the CFTC is more suitable for directing and controlling crypto markets.

SEC

On the other hand, Gary Gensler thinks that the crypto bill currently being discussed has aspects that weaken investor protection. Continuing to insist that cryptocurrencies are securities, Gensler says that most assets in the industry continue to operate as unregistered securities.

As it is known, the SEC has sued many crypto companies, the largest of which is Ripple. Finally, the SEC has launched an investigation into whether Binance violated securities laws at the time BNB was launched.

The SEC, which closely monitors the activities of crypto companies in the USA, is the government agency that has imposed the most penalties on crypto companies that do not comply with the operating rules since the emergence of cryptocurrencies. Crypto companies have been fined close to $180 million this year, according to data from crypto research firm Elliptic. Since the emergence of cryptocurrencies in 2009, the total amount of fines has reached $ 3.35 billion. The SEC, on the other hand, was the institution that cut more than 70 percent of these fines.