Gary Gensler, the chairman of the United States Securities and Exchange Commission (SEC), has asked staff at the SEC to fine-tune compliance for crypto tokens and intermediaries.
He emphasized that most crypto tokens are securities, which aligns with the SEC’s previous statements. This is important news for anyone (especially Ripple) interested in investing in or launching a cryptocurrency project.
XRP over the Week
Over the last week, XRP has done well for itself.
After hitting a low of $0.31, the cryptocurrency price began to rise towards the $0.35 support.
The price of XRP, however, bounced and made a comeback, breaking above the $0.35 resistance, hitting $0.36, and is currently retesting the $0.352 level.
The support level around $0.31 was important because it coincides with the support of an ascending channel the cryptocurrency has followed since mid-June.
Prices may continue to rise this way, which may even mean that XRP will break the $0.35 – $0.36 resistance.
If a bounce does not occur to the downside and pushes XRP back towards $0.3, its price could increase to the $0.38 – $0.40 levels before a possible correction.
Today (22 November), XRP is following a bullish trend. The price of XRP is changing hands at around $0.36, up by over 3%.
SEC and Crypto Compliance
Recently, Gensler has asked the SEC to “fine-tune” compliance by stakeholders in the crypto industry, emphasizing that most cryptocurrencies out there are securities.
This is expected since the core principles of the US SEC revolve around regulating securities markets (like most crypto), according to Gensler and their intermediaries.
Gensler, unsurprisingly, cited bitcoin as an example, stating that bitcoin falls under the category of the Commodity Futures Trading Commission (CFTC).
Gensler pointed out that some people in the crypto industry have called for “greater regulation” on cryptocurrencies, stating that over the last five years, the SEC has made its stance on the issue known.
In some ways, it is not hard to agree with Gensler. Cryptocurrencies are highly volatile and trading them subjects users to many risks. Investors are constantly exposed to countless number of these risks.
Emphasizing the need for investor protection, Gensler stated that flexibility in “applying existing disclosure requirements” may be appropriate.
As for the crypto intermediaries, Gensler also asked the SEC to work with them and ensure they register their functions, be it brokers, exchanges, dealers, or custodial middlemen.
The SEC so far has unveiled plans to set up an office dedicated to reviewing filings related to crypto assets.
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