The US Securities and Exchange Commission (SEC) has urged Congress to pass cryptocurrency legislation to protect investors, the new SEC president has revealed. The chairman said the securities regulator is also working with the Commodity Futures Trading Commission (CFTC) and the US Treasury Department to deal with criminal activities facilitated by cryptocurrencies.
The SEC is working with the CFTC, the Treasury on crypto regulation, urging Congress to pass legislation
The new chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has asked Congress to take action regarding the cryptocurrency law, he told the House Appropriations Subcommittee on Wednesday.
Gensler explained to the subcommittee that there were “gaps” in the regulation of cryptocurrencies such as Bitcoin and Ether. Noting that “thousands” of cryptocurrencies currently exist and many of them acting as unregistered securities, he said Stressed on:
We are only able to bring 75 actions and currently there are some others which are not compliant.
Gensler said the most important issue in the regulation of the crypto space is the lack of regulatory oversight of cryptocurrency exchanges. He said that he “wants to work with Congress to bring investors protection to the stage where these sometime, sometimes-securities are trading on the platform.”
The chairman began to give an example of front running, where a crypto exchange could share order information, allowing an investor to trade before a crypto transaction, making purchases more expensive for other investors. He confirmed: “Without beat cops and some rules of the road, market participants can move your order forward.”
In contrast, the chairman stated that the SEC is working to protect against fraud and manipulation on traditional stock exchanges, but does not have the same protections for crypto exchanges. He stressed that the SEC is “trying to bring equal protection to exchanges where you trade crypto assets, as you might expect on the New York Stock Exchange or Nasdaq.”
His statement about increased monitoring of crypto exchanges makes a similar statement at the Financial Industry Regulatory Authority (FINRA) conference last week when he said that crypto exchanges Need more regulation.
Gensler further confirmed that the SEC is collaborating with the Commodity Futures Trading Commission (CFTC) and the US Treasury Department to combat criminal activities facilitated by cryptocurrencies. He revealed:
They are focusing on anti-money laundering and protection against illegal activity.
Last week, the Treasury Unveiled Biden’s tax proposal that includes requiring businesses to report crypto transactions worth more than $ 10K to the Internal Revenue Service (IRS) as part of a broader action on tax evasion. This week, bitcoin news Reported That the Biden administration wants to increase cryptocurrency oversight to protect investors and prevent illegal transactions through cryptocurrencies. Meanwhile, federal regulators are working to come up with a Single regulatory framework For cryptocurrency directed by the Biden administration.
While Gensler has urged Congress to take action on crypto legislation, Congressman Jim Himes recently said That his colleagues do not have a deep understanding of cryptocurrency. As a result, he does not expect Congress to pass crypto legislation any time soon.
What do you think of the SEC urging Congress to pass crypto legislation to protect investors? Let us know in the comments section below.
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