Sat 10 Sep 2022 ▪ 2:00 PM ▪
min read – by
For now, the country of Uncle Sam has not yet made a decision on the legalization of bitcoin and cryptocurrencies. However, the rulers are increasingly in favor of clear regulation of these assets. However, a problem arises regarding the actors that should regulate in the United States. Between the SEC and the CFTC, we fear the cannibal effect on their respective missions. So Gary Gensler appealed to elected officials to give the CFTC more power.
Strip the SEC to Strip the CFTC?
With at least fifty files in his hands, including those related to the investigations into the crypto exchanges of the United States and Binance, or even Grayscale, Gary Gensler and his entire team at the SEC must be really overwhelmed. Is this why he thought of dividing the tasks associated with monitoring cryptocurrency exchanges?
In fact, he has just stated that he is in favor of granting additional powers to the Commodity Futures Trading Commission (CFTC) so that it can closely monitor bitcoin. Hence the question: were they done solving the problem of the definitions of titles and wares?
That’s why he appealed to US lawmakers to support the CFTC to ” monitor and regulate unsecured cryptocurrencies and associated intermediaries Provided, of course, that the US Congress does not take away his current privileges. So Paul is not allowed to undress at all!
” Let’s make sure we don’t accidentally compromise the securities laws that underlie $100 trillion capital markets. The securities laws have made our capital markets the envy of the world ‘ he had underlined.
A request pending Congressional approval
As a reminder, we agree to mention the existence of a request from the head of the CFTC, Rostin Behnam, to ensure the regulation of cryptocurrencies. Investors need protection, he argued. It was at the beginning of the year.
A few months later, the Senate Agriculture Committee had come forward proposing a bill that would grant him that power. However, nothing has been decided on this yet. So far, the CFTC can only monitor derivatives futures and swaps.
Still, the two agencies know how to work hand in hand. Didn’t they recently propose to include cryptocurrencies as an amendment to the PF form? The aim is to obtain an accurate report and the separation of the categories of ” Cash and cash equivalents “.
In case of validation of this change, the PF form will see the creation of a new asset subclass for crypto and other digital assets.
It should also be noted that the CFTF, while less endowed with powers, had already been discussed in the crypto universe. Recently, it added 34 foreign crypto platforms to its blacklist. Among them are Bitpay options, Algobit, etc. In total, the black list of the CFTC has 200 entities.
Last June, the Commodity Futures Trading Commission has also ordered Polymarket to pay a $1.4 million fine. The reason is that the latter was offering binary options contracts without permission.
And still in this story of fines, let’s not forget that in October 2021, the same agency forced Bitfinex and Tether to pay it a $42.5 fine. The reason ? He would have made statements that misled investors and made transactions with Americans.
Admittedly, regulation of the crypto ecosystem is necessary for investor protection. But it should be noted that regulation does not mean hindering the progress of crypto projects or waging war on its leaders.
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The blockchain and crypto revolution is underway! And the day the impact will be felt on the world’s most vulnerable economy, against all odds, I’ll say I had something to do with it