Gary Gensler wants cryptocurrency intermediaries to register with both the SEC and CFTC to ensure investor protection
In his prepared remarks for his upcoming testimony before the United States Senate Committee on Banking, Housing and Urban Affairs, US Securities and Exchange chief Gary Gensler reiterated his view that the “vast majority” of existing cryptocurrencies are unregistered securities.
Gensler has asked SEC staff to work directly with token issuers to bring them into compliance.
At the same time, they have recognized that “a small portion” of tokens that “could represent a significant portion” of the total value of the crypto market are non-securities. Gensler has publicly stated that bitcoin is a commodity, but he refrained from providing investors with more clarity about the status of Ethereum’s securities.
The SEC boss admits that the adoption of more flexible disclosure requirements “could be justified” due to the nature of cryptocurrencies.
Since many decentralized and centralized cryptocurrency intermediaries are dealing with securities, they must register with the SEC in “some capacity,” according to Gensler. This will help in enhancing the safety of the investors.
Gensler wants both securities and non-securities to be able to trade with each other, which is why he wants cryptocurrency intermediaries to be registered with the Commodity Futures Trading Commission (CFTC) as well. He has pointed to the fact that the agency already has dual registrants among broker-dealers.
The SEC chief has said he wants his agency to retain its “strong officers.” Also, he is set to work with Congress on legislative initiatives related to cryptocurrency.