Gary Gensler, the chair of the U.S. Securities and Exchange Commission, spoke in favor of a measure that would give the Commodity Futures Trading Commission broader regulatory authority over cryptocurrencies that are not securities.
Gary Gensler expressed his opinion in favor of such legislation on Thursday when addressing an industry conference, according to Wall Street Journal. The head of the SEC pointed out that if Congress approves the idea, his agency won’t lose any regulatory power.
A crypto law was the subject of a petition to Congress from the CFTC, which was headed by Rostin Behnam. The CFTC was requested to have jurisdiction over cash markets for cryptocurrencies that are not securities by Behnam’s organization.
The CFTC is reportedly interested in regulating the two biggest digital currencies, Bitcoin (BTC) and Ether (ETH). The watchdog for Behnam also requested cash and resources to add more oversight as needed.
Gary Gensler backed an increase of the CFTC’s jurisdiction, but the former investment banker also repeated tired talking points about other altcoins and cryptocurrencies. Other cryptos, according to Gensler, have characteristics of securities and must adhere to SEC regulations.
“Let’s ensure that we don’t inadvertently undermine securities laws underlying $100 trillion capital markets. The securities laws have made our capital markets the envy of the world.”
The head of the SEC has already criticized cryptocurrency exchanges like Coinbase for breaking rules and suggested that such platforms should be registered with his organization. Additionally, the SEC is engaged in continuing legal disputes with cryptocurrency players like Ripple over what it regards as securities violations.
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