WASHINGTON—Securities and Exchange Commission Chairman
expressed concern Tuesday that efforts in Congress to jot down laws for the cryptocurrency trade may compromise rules that govern the broader capital markets.
Asked a few invoice launched final week by Sens.
(R., Wyo.) and
(D., N.Y.), Mr. Gensler initially demurred, saying he would favor to debate the proposed laws with the senators. But he then recommended that legislative adjustments concentrating on cryptocurrencies may have implications for inventory exchanges or mutual funds.
“We don’t want to undermine the protections we have in a $100 trillion capital market,” Mr. Gensler stated at The Wall Street Journal’s CFO Network Summit. “Like behaviors should have like treatment.”
Asked if the latest rout in cryptocurrency costs added new urgency to the SEC’s issues concerning the market, Mr. Gensler stated, “the urgency is highlighted, but the urgency has been there.”
The Lummis-Gillibrand invoice, which is unlikely to go the present Congress, goals to create a “complete regulatory framework for digital assets,” its sponsors say. One of its provisions would search to offer extra readability round which cryptocurrencies meet the authorized definition of securities that the SEC ought to regulate, a rallying level for the trade.
But the invoice would carve some cryptocurrencies out of the SEC’s jurisdiction. It additionally would create new ideas within the practically 90-year-old securities legal guidelines that might permit issuers of some digital tokens to satisfy lighter disclosure necessities than public firms face.
“We’re not looking to extend our jurisdiction,” Mr. Gensler stated. “But these tokens are being offered to the public, and the public is hoping for a better future. That’s the characteristics of an investment contract,” a sort of safety.
Mr. Gensler’s remarks distinction with these of his counterpart on the SEC’s sister regulator, the Commodity Futures Trading Commission, which might achieve important authority underneath the Lummis-Gillibrand invoice.
At an occasion final week, CFTC Chairman
stated the proposed laws “does a very good job” of clarifying the excellence between securities and non-securities within the crypto market and in empowering the CFTC to police the latter class of property.
Write to Paul Kiernan at firstname.lastname@example.org
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared within the June 15, 2022, print version as ‘SEC Head Voices Concerns on Crypto Bill.’