SEC Chairman Gary Gensler has explained what we can expect from the regulatory framework for cryptocurrencies he is working on.
Gary Gensler, chairman of the U.S. Securities and Exchange Commission, has explained the details of the rules being developed by the regulatory agency. According to its chairman, The regulations seek to protect investors, as the SEC is the primary financial watchdog, with powers in Congress to protect customers and their investments.
The United States is close to finalizing regulation for cryptocurrencies, thanks to the collaboration of different agencies, institutions and companies in the private sector. Recently, the Federal Reserve presented the First draft of the bill to President Biden.
The draft bill submitted by the Fed will expand the SEC's administrative powers, which is a concern for part of the community. The SEC is currently facing a lawsuit against Ripple and is facing a lawsuit from the SEC. Grayscale, for having refused to approve its Bitcoin spot ETF.
What can we expect from SEC regulation?
Firstly, --Gary Gensler He noted that regulation on cryptocurrencies has been rushed due to the events of recent months, such as the Fall of Terra o Celsius, which have caused serious economic losses to investors and a great distrust among users.
These events have caused a Greater demand for regulation from institutions and usersIn fact, China has completely banned the use of cryptocurrencies, while Russia has banned digital payments.
The United States was reluctant to present a regulatory framework due to the lack of understanding and consensus on its approach. However, Joe Biden's presidential order demanding the development of a regulatory framework forced things.
Gensler has noted that users can expect a regulatory framework that will offer them a Greater protection and more surveillance on cryptocurrency service providers. The main areas of focus will be lending, exchanges and brokerage.
Both the SEC and the Federal Reserve are open to proposals and discussions, as they want to include the major players in the sector. Gensler says he wants the process is as clear as possible and, to this end, will make all measures public and open to dialogue.
Finally, the SEC and Federal Reserve regulatory framework will cover all tokens, stablecoins and also unstablecoins, so they will also have the possibility to work with banking regulators. Gensler has reiterated that Bitcoin is not a security token and that many tokens will fail, urging users to be careful with their investments.
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