Cryptocurrency exchanges could be offering services that should be regulated by the U.S. Securities and Exchange Commission, according to its director, Gary Gensler.
The head of the Securities and Exchange Commission (SEC) gave his first address to the U.S. Senate on Tuesday, September 14, indicating that services that generate profitability and interest should be regulated by the agency.
Gensler said, according to a document, that the SEC seeks to work with the U.S. Congress and other regulatory entities (international or national), to establish regulations for a series of activities that, in his opinion, are within the competence of the agency he presides.
These regulatory elements are, as he mentioned: the offer and sale of tokens, cryptocurrency exchange and lending platforms,stablecoins, investment vehicles that provide exposure to cryptoassets or crypto derivatives; in addition, cryptoasset custody services.
He also invited exchanges to sit down and talk with the SEC. “I have suggested that platforms and projects come and talk to us. Many platforms have dozens or hundreds of tokens available,” he said.
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While the legal status of each token depends on its own factors and circumstances, it is very unlikely that platforms that have 50, 100 or 1000 tokens available will not have any valuable assets (security).
There is no doubt: since securities do exist on these trading platforms, under our laws they must be registered with the Commission, unless they qualify for an exception.
Gary Gensler, Director of the Securities and Exchange Commission, US.
Gensler further stated that they were working with the Commodity Futures Trading Commission (CFTC) to ensure that they were not required to register with the Commission unless they qualified for an exemption.s), as well as with the Federal Reserve, the Treasury Department, and the Office of the Comptroller of the Currency (OCC), to establish measures to protect investors.
Similarly, and to conclude, he referred to the technological innovation proposed by cryptocurrencies and the importance of regulating them when appropriate.
My position is neutral regarding technology. I think this technology has been and can continue to be an agent of change, but technologies don’t last long enough if they can be kept out of the regulatory framework. I think the SEC, working with the CFTC and other entities, can build more robust oversight and protect the investor in the crypto-financial area.
Gary Gensler, Director of the Securities and Exchange Commission, U.S.A.
SEC: targeting cryptocurrency exchanges and projects
Under the suspicion that some cryptocurrency projects may have incurred, for example, an initial asset offering, or that platforms develop services of a financial nature, the SEC has begun to study each case to deliberate whether legal regulations should be applied.
The cryptocurrency exchange Coinbase, one of the largest in the world, based in the U.S., would be under the SEC’s sights due to a new product that would be subject to financial regulation.
Coinbase Lend is a platform that grants annual percentage returns to users, based on loans they make with cryptocurrencies.
For the SEC, this type of product would qualify as asecurity, according to Coinbase CEO Brian Armstrong. A fact reported by CryptoNews last September 9. The SEC denied issuing the comments attributed to it.
However, the Securities and Exchange Commission does launch an investigation against the Uniswap platform, a decentralized cryptocurrency and token exchange.