The Chairman of the Securities and Exchange Commission (SEC) said that he would favor Congress transferring additional authority to regulate cryptocurrencies to the CFTC.
Gary Gensler, speaking at a conference for the sector on Thursday, expressed his excitement at the prospect of granting the Commodity Futures Trading Commission additional control over the cryptocurrency market “as long as it doesn’t take away power from the SEC.”
Yet, Gensler pointed out that it was essential to find a middle ground with regard to the regulatory monitoring that is provided to the CFTC and to make certain that it does not undercut securities laws in the United States.
The Senate Agriculture Committee, which is the regulatory body that oversees the Commodity Futures Trading Commission (CFTC), has proposed measures that would give the agency supervision over Bitcoin and Ethereum, which are two of the major cryptocurrencies currently available on the market. At this time, the CFTC is only authorized to exercise regulatory authority over the cryptocurrency market, which includes futures and swaps.
The plan is in accordance with the effort by crypto lobbyists to have the sector regulated by the CFTC, which the proposal would accomplish. Regulations governing commodities, as opposed to laws governing the securities market, are widely believed to be more appropriate for governing digital assets. This opinion is shared by many industry professionals. Between the years 2009 and 2014, Gensler served as the head of the CFTC.
What Does It Mean for CFTC?
The statements made by Gensler represent a significant step forward in the process of regulating cryptocurrencies in the United States. In order for the SEC to concentrate on regulating the other aspects of the digital asset business, it would be beneficial to delegate control of Bitcoin and Ethereum to the CFTC. The agency has not wavered from its position that it considers other cryptos to be securities and that they should be handled in accordance with the regulations that already exist regarding securities.
The government started the year by almost doubling the size of the team working in its crypto enforcement branch. And it is pursuing registrations from crypto exchanges that are situated in the United States.