Millions of investors buy various cryptocurrencies in their portfolios, the value of which fluctuates so much that even seasoned traders get seasick.
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The number of people who buy cryptocurrencies also attracts the attention of central banks and various stockbrokers. Among others, even the most powerful in the United States.
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Securities Commission chief Gary Gensler is already counting on the US to introduce robust surveillance to help protect millions of Americans with bitcoin (and other) wallets.
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“I have been teaching about these technologies for three years and I am neutral towards them. But I can’t be neutral about investor protection. If anyone wants to speculate, it is their choice, but we play the role of a state that protects investors from fraud. ” he said Gensler pro server Bloomberg.
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He noted in general that advanced technologies have brought economic progress in human history, and sees a similar opportunity in digital media. However, according to him, this can only come with strong and well-thought-out regulation. He therefore asked Congress to pass a law that would allow the federal agency to oversee cryptobourses.
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It’s high time to approve the ETF
However, Gensler does not complain about the lack of tools, they are said to be extensive now. Over the years, the United States has addressed the types of digital assets that fall within its remit.
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For example, bitcoin, which acts as a currency, is considered a commodity, not a security. However, there are thousands of other coins, and Gensler believes that most of them function as unregistered bonds, which must follow the rules of the Securities Commission.
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However, Republicans are not in favor of extensive regulations. “A lot of people want security. I start from the perspective that people should have maximum freedom when it comes to transactions in which they want to participate voluntarily. We need to have a debate on what regulatory framework is right, “Hester Peirc, their commission representative, told Bloomberg.
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Gary Gensler
- He has chaired the Securities and Exchange Commission (SEC) since 2021.
- In the past, he was involved in Hillary Clinton’s presidential campaign, then lectured at Cambridge’s MIT.
- His lectures on cryptocurrencies have millions of views on YouTube.
- During Barack Obama’s government, he served as chairman of the Commodity Futures Trading Commission (CFTC).
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New SEC chief Gary Gensler
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Among other things, the possibility of the creation of the Bitcoin ETF, ie an exchange-traded fund, which would lead to greater transparency of the cryptoworld and probably attract new investors, is being discussed in the USA and elsewhere.
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However, according to Gensler, there is no fixed deadline by which the Commission should conclude yes-no. The SEC has so far resisted approving these funds for fear of fraud and manipulation of the bitcoin market. However, according to Commissioner Peirc, it is “high time” for the SEC to approve the cryptocurrency ETF.
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Gensler is also interested in the impact of stablecoins
According to the SEC chairman, the easiest way to quickly manage and regulate trading in digital tokens is to regulate the cryptobourses themselves. However, according to Bloomberg, he is also interested in new ways in which people get to cryptocurrencies – such as through peer-to-peer loans on decentralized finance (DeFi) platforms.
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Gensler also sits on the Treasury’s Financial Stability Board and the Biden’s Financial Markets Working Group, which recently held a meeting on the impact of stablecoins.
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These are cryptocurrencies whose value is tied to traditional currencies, such as the US dollar, and which have become a major part of the cryptocurrency trading system.
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Regulators are worried about the impact it would have if one of the stablecoins turned out not to have the value it should have, which has recently been addressed in the case of Tether, for example.
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Two commissions for cryptotroms
Patrick McCarty, who teaches cryptocurrencies at Georgetown University School of Law, says Gensler’s understanding of and awareness of digital assets means the industry will provide a “fair hearing,” although many proponents are likely to be disappointed.
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“When Kryptonians say they want legal certainty, they don’t mean it. They don’t want to be regulated. And that doesn’t quite match Gary’s point of view, “says McCarty.
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Christine Trent Parker, who focuses on cryptoactive as a partner at Reed Smith in New York, says that while the new SEC rules would give the industry more security, it could also result in more market control.
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On the one hand, there would be the Commodity Futures Trading Commission (CFTC), which would focus on virtual currencies such as bitcoins, and the SEC would deal with virtually everything else.
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Access to the crypt is still a matter of debate around the world. While the United States wants to have at least partial control over a market that has been created out of control, in other countries, sentiment towards the crypt is colder.
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For example, the Bank of India intends to ban digital coins, while China raids volatile currency miners.
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