Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), referred to the work done on the regulation of crypto markets in his recent statement. Gensler expressed concern that possible legislation could negatively impact broader markets.
Asked last week for his views on a bill submitted by US Senators Cynthia Lummis and Kirsten Gillibrand, Gensler claimed that regulatory changes to the cryptocurrency industry could have implications for exchanges or mutual funds.
Expressing his views at The Wall Street Journal's CFO Network Summit event, Gensler said that they had previously said that these markets should be regulated urgently regarding the recent decline in crypto money prices, and this rhetoric is still valid.
Its proponents state that Lummis-Gillibrand's crypto bill was drafted with the goal of creating a comprehensive regulatory framework for digital assets. One of the prominent items in the bill is the definition of cryptocurrencies. In this way, it will be clear which institutions can control the crypto markets.
On the other hand, it is said that the bill could remove the control of some cryptocurrencies from the jurisdiction of the SEC. Commenting on this issue, Gensler said that they have no intention of expanding their jurisdiction, but that the tokens offered to the public have the characteristics of an investment contract and that they offer a certain return promise, which puts these assets in the security class.
The Lummis-Gillibrand crypto bill proposes a broader authorization for the US Commodity Futures Trading Commission (CFTC). Offering his views on the bill, CFTC Chairman Rostin Behnam said that the proposed legislation would be extremely helpful in clarifying the distinction between securities and non-securities in the crypto market.
The CFTC Chairman expressed his welcome at the proposal to expand the CFTC's mandate to oversee non-security crypto assets.