Sat, September 10, 2022 ▪ 2:00 pm ▪
min. read – by
At the moment, Uncle Sam’s country has not yet made a decision on the legalization of bitcoins and cryptocurrencies. However, its rulers are increasingly advocating clear regulation of these assets. However, a problem arises regarding the entities that must regulate in the United States. Between the SEC and the CFTC, we fear a cannibalistic effect on their respective missions. That’s why Gary Gensler has asked elected officials to give more power to the CFTC.
Deprive the SEC to deprive the CFTC?
With at least fifty files in hand, including investigations into the US cryptocurrency exchanges and Binance, or even Grayscale, Gary Gensler and his entire team at the SEC must be really overwhelmed. Is that why he decided to separate the tasks related to monitoring cryptocurrency exchanges?
Indeed, he just spoke out in favor of granting additional powers to the Commodity Futures Trading Commission (CFTC) so that the latter can keep a close eye on bitcoin. So the question is: have they finished solving the problem of title and product definitions?
As such, he has asked US lawmakers to grant CFTC approval for the “oversight and regulation of fiat cryptocurrencies and related intermediaries.” Provided, of course, that the American Congress does not deprive him of his current privileges. So Paul doesn’t have to undress at all!
“Let’s take care not to inadvertently violate securities laws that underpin the $100 trillion capital markets. Securities laws have made our capital markets the envy of the world,” he said.
Request pending congressional approval
As a reminder, we agree to mention the existence of a request issued by the head of the CFTC, Rostyn Behnam, to ensure the regulation of cryptocurrencies. Investors need protection, he argued. It was at the beginning of the year.
A few months later, the Senate Agriculture Committee came up with a proposal for legislation giving it such powers. However, nothing has been decided on this matter. So far, the CFTC can only control derivatives futures and swaps.
However, the two agencies know how to work hand in hand. Hasn’t there been a recent proposal to include cryptocurrencies as an amendment to the form of the PF? The goal is to get an accurate report and separate categories of “cash and cash equivalents”.
If this amendment is approved in Form PF, a new subclass of assets for cryptocurrencies and other digital assets will be created.
It should also be noted that the CFTF, although less empowered, is already the talking point in the crypto universe. He recently added 34 foreign crypto platforms to his blacklist. Among them are Bitpay Options, Algobit, etc. In total, there are 200 organizations on the CFTC black list.
Last June, the Commodity Futures Trading Commission also ordered Polymarket to pay a $1.4 million fine. The reason is that the latter were offering binary options contracts without permission.
And yet, in this fine story, let’s not forget that in October 2021, the same agency forced Bitfinex and Tether to pay a $42.5 fine. Reason? The latter would make statements misleading to investors and make deals with the Americans.
Admittedly, regulation of the crypto ecosystem is necessary in order to protect investors. But it should be noted that regulation does not mean slowing down the development of crypto projects or waging war with their leaders.
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Blockchain and crypto revolution is in full swing! And on the day when the blows are felt on the most vulnerable economy of this World, against all hope, I will say that I had something to do with it.