SEC Chair Gensler Proposes One Rule Book Crypto Regulation – The Financial Times reported on Friday that SEC Chairman Gary Gensler has suggested “one rule book” for the regulation of cryptocurrencies. To prevent supervision gaps in the cryptocurrency industry, he is trying to reach agreements with other financial regulators, like the Commodity Futures Trading Commission (CFTC).
He stated:
“I’m referring to one rule book on the exchange.”
The SEC chief elaborated, saying that in addition to ensuring order book transparency, the rule should safeguard investors from fraud, front-running, and manipulation.
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According to Gensler, the rules will be followed for “all trade, regardless of the pair — be it a security token against security token, security token against commodity token, or commodity token against commodity token.
The head of the SEC disclosed that he and his CFTC counterparts are working on a “memorandum of understanding,” which would be a formal agreement to guarantee that trading in digital assets has sufficient safeguards and transparency. According to him, the SEC would “pass that information over to the CFTC” if a commodity token is listed on a platform under the jurisdiction of the securities regulator.
According to Gensler:
“One rule book on an exchange will actually benefit the public by getting that market integrity envelope. If this sector is to move forward, it must promote trust in these marketplaces.”
Recently, U.S. Senators Kirsten Gillibrand and Cynthia Lummis suggested a plan that would increase the CFTC’s control over the cryptocurrency industry.
Gensler issued a warning last week about “too good to be true” crypto products. He also recently issued a warning that cryptocurrency exchanges frequently trade against their customers. The SEC chairman warned investors that many tokens will fail in the wake of the failure of the cryptocurrencies Terra (LUNA) and Terrausd (UST).
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For focusing on enforcement while regulating crypto assets, Gensler has come under criticism. Hester Peirce, a commissioner of the SEC, stated in May that there will be long-term repercussions since the securities watchdog failed to adequately regulate cryptocurrencies.
