SEC Chair Gensler Attempts To Come To An “Understanding” With The CFTCJune 24, 2022 9:53 pm
SEC chair Gary Gensler is reportedly trying to come to an understanding with the CFTC in an attempt to establish a one-rule playbook when it comes to crypto regulation.
Gensler’s increase in desire now to be more collaborate comes at an interesting time when the CFTC seems to be gaining more authority on how digital assets should be regulated.
Recently, the Digital Commodity Exchange Act and the Responsible Financial Innovation Act are recent proposals that both aim to give the CFTC potentially more power than the SEC.
If these bills manage to pass, it could potentially change the crypto regulatory landscape as the SEC will start to in the backseat.
SEC's Gensler says he wants a pact with CFTC to create ‘one rule book’ for crypto to avoid gaps in oversight https://t.co/txeiiKNGxS
— David Wessel (@davidmwessel) June 24, 2022
Debbie Stabenow, chairman of the Senate Agriculture Committee, which has oversight of the CFTC, and the committee’s ranking member John Boozman are reportedly also drafting a crypto regulation bill, which is expected to expand CFTC powers. Gensler, who headed the CFTC from 2009 to 2013, has expressed skepticism about changes in the status quo.
The SEC has taken the lead in crypto regulation so far, but frequently to the dissatisfaction of the industry and lawmakers who are critical of its methods of allegedly regulating through enforcement.
Crypto industry leaders have explicitly asked for clearer regulation, and SEC commissioner Hester Peirce has pressed for policy changes from within the commission.
So far, the SEC has been the primary regulatory agency that has been active in enforcing crypto regulation in recent years.
Regulators have collected over $3 billion dollars from the crypto industry so far and it seems that the majority of these funds end up going to the SEC.
The SEC’s regulatory actions have been largely disappointing for the majority of the crypto community with many claiming that the agency is inconsistent with its actions and does not provide clear guidelines.
As a result, industry experts believe that the crypto industry innovation and growth has been stifled due to this regulatory uncertainty.
Gensler bends the knee (sort of).
He realizes he's going to lose the war to control crypto (rightly so) — so now he's trying to cozy up to the CFTC.
Let's hope they don't let the vampire in.
— Mark Jeffrey (@markjeffrey) June 24, 2022
The president of the Securities and Exchange Commission (SEC) of the United States, Gary Gensler, is in talks with officials of the Commodity Futures Trading Commission (CFTC) to prepare a “memorandum of understanding” on the regulation of digital assets.
Together, the agencies can ensure market integrity, Gensler told The Financial Times in an interview published on Thursday.
“I’m talking about an exchange rulebook that protects all trades regardless of pair – [sea] a security token against a security token, a security token against a commodity token, a commodity token against a commodity token”, Gensler told the newspaper.
From the industry’s perspective, it seems that the SEC’s potential to lose regulatory power in the near future has now made Gensler more open to “negotiations”.
SEC Chair has been pressing for control over the regulation of crypto trading, which a new bill seeks to entrust entirely to the CFTC.https://t.co/Vas8y5HR96
— CryptoPotato Official (@Crypto_Potato) June 24, 2022
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