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SEC MAY PRESENT FAVORABLE STATEMENT FOR BITCOIN

SEC MAY PRESENT FAVORABLE STATEMENT FOR BITCOIN

Gary Gensler, chairman of the Securities and Exchange Commission, shared some of his thoughts on cryptocurrency with Jim Cramer of CNBC during an interview with Squawk on the street.


'Key Secrets of Security'

Many of these financial assets, crypto assets, have important security features ... some like bitcoin, and the only one, Jim, I will say because I will not talk about any of these. tokens, my predecessors and others said they were property, ”said Gensler.


He added that "there is a lot of work to be done to really protect the investment community and many of these tokens at the moment or to try to work where they may not be compatible and I will leave it like that."


Gensler recently told the Financial Times that he wanted "one legal document in trading that protects all trades regardless of the two- [could be] a security token against a security token, a security token against an asset token, an asset token against an asset token" to protect. investors against fraud, manipulation, fraud and transparency.



David Lesperance, head of immigration partner and tax adviser at Lesperance & Associates, said the idea of ​​a "single law book" was aimed at preventing any slipping into the regulatory cracks as the SEC and Commodity Futures Trading Commission (CFTC) regulates the crypto environment.


'Legislative Turf War'

Lesperance noted that the CFTC is gaining political power to regulate crypto markets directly under a bipartisan bill called the Responsible Financial Innovation Act, sponsored by Sens. Cynthia Lummis (R-Wyo.) And Kirsten Gillibrand (D-N.Y.)


Among other things, the bill will remove the mandate from the CFTC, which will ensure that cryptocurrencies are treated as assets instead of securities.


The crypto industry will need to fund the CFTC to control the industry and take on a host of new responsibilities related to tangible assets.


"The legal turf war continues and due to the controversy surrounding the crypto world related to stable currencies, DeFi, and NFT, there is no doubt that the winner will be announced soon," Lesperance said.


"oh now you want to talk regulation when they forced her !! what happened GG ??" one person on Twitter. "you can no longer undo and press the price of bitcoin ?? I applaud the senators gillibrand and lummis finally get the ball rolling!"


It is classified as an asset

"The downgrading of cryptocurrencies in the regime of fiat currency is hurting investors - everything we know about money has changed as a result of the crypto revolution - it's time to think about new ideas like eliminating income tax, Fed, and many other legacy banking laws," said one analyst. .


Frank Corva, a senior analyst of crypto and blockchain Finder, said Gensler's desire for a single legal document for digital assets was not true.


"You have already shared that you feel digital assets like bitcoin and ether should be classified as assets," he said. "With BTC and ETH accounting for more than 55% of the total crypto market, this could mean that the CFTC should be the agency to handle regulatory activities."



However, Corva said not all digital assets serve the same purpose as bitcoin and ether and, "therefore, not all digital assets should be regulated as these two assets."


"It seems that no matter what agencies end up controlling the crypto tokens, Gensler wants to say how the regulation is done," he said. "It is absurd to assume, however, that there should be a single regulatory document that will oversee these different types of digital assets."


SEC Must Take First Step

Amy Lynch, a former SEC regulator and president of FrontLine Compliance, said there are no current rules in the SEC's Spring regulatory agenda that specifically address cryptocurrencies.


"However, it may not be the SEC taking the initiative to regulate this market," he said. "Treasurer has taken the lead in this regard from a regulatory point of view, and it may eventually be the Treasurer who comes out with stablecoins legislation before there is any specific regulation in other cryptocurrencies. Or, it may work differently."


In any case, Lynch added, the SEC and the Treasurer, as well as the CFTC, the National Futures Association, and the Financial Industry Regulatory Authority "must all work together to regulate the crypto markets which makes it difficult to regulate."



Lynch said the regulatory issue continues to be driven primarily by the SEC's inclusion in crypto trading and ETFs.


He added that several ETFs have been filed for registration, but none have been approved so far due to a lack of basic crypto asset management.


"The industry will continue to comfort until the SEC takes action," Lynch said. "Crypto markets require regulatory measurement of regulations and increase market validity."

Source: yahoo




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