SEC Chairman Gary Gensler, known for his negative stance on Bitcoin (BTC) and cryptocurrencies, made important statements about the crypto regulation.
Earlier, in previous interviews, Gensler also stated that most cryptocurrencies, other than Bitcoin and Ethereum, are subject to security laws and must be registered as securities.
In an interview with Yahoo Finance, the head of SEC hinted at waiving specific rules in its bid to regulate the crypto market. Precisely, the SEC is considering exempting crypto companies from certain securities laws.
Gensler also asserted that several crypto companies operate outside compliance standards currently. This exemption will surely force them to come into compliance with regulations.
However, taking no unfriendly stance further, the SEC Chair said,
“There’s a potential path forward. I’ve said to the industry, to the lending platforms, to the trading platforms: ‘Come in, talk to us.'”
As per Gensler, the SEC plans to offer the crypto market a fixed
set of laws, which could benefit the industry. Being said that, the crypto market is also willing to work within the law and follow compliance standards.
However, these upcoming standards would not be mandatory as U.S. authorities and those worldwide have already taken a proactive approach to control the market.
Why is SEC considering Crypto regulations?
These days, Crypto regulation has become an important discussion among U.S. authorities.
Especially, after the recent fall of several crypto companies, including Three Arrows Capital and Celsius Network, the need for a set of laws is an essential step. The customized rules for the stablecoins seem to be the highest priority of the SEC.
Recently, the U.S. Treasury also asked for public commentary on the risks and benefits of the crypto market. This report will be submitted to President Biden and his administration for further review in the next few days.
The increased pace of action clearly indicates that a wide-ranging crypto regulation policy could happen before the end of the year.
On the other hand, Ripple recently criticized SEC over hiding expert testimony