The Chairman Of The United States Securities And Exchange Commission Declares That ‘Most Crypto Tokens Are Securities

SEC Chairman
SEC Chairman

When it comes to cryptocurrency exchanges, SEC Chairman Jay Clayton said on Monday that two major US agencies should work together to determine how they should be regulated.

A variety of crypto platforms, including those for commodities and security tokens, currently offer tokens that represent investment contracts and/or notes.

At present time, only SEC-approved trading venues can conduct securities trades.” The SEC’s chairman, Gary Gensler, spoke at Penn.

In the eyes of US law, most crypto tokens are investment contracts or securities, according to Gensler.

Some are compared to digital gold, while others may or may not be securities, depending on whom you ask.

Most Of The World’s Currencies Are Not Used As Currency

Asked whether or not he planned to register and supervise platforms that traded both securities and non-securities, he said, “Yes.” he answered.

US derivatives, such as futures and options on fixed-income, currency, commodities, and cryptocurrencies are regulated by the Commodity Futures Trading Commission, whereas assets like stocks are regulated by the Securities and Currency Commission.

It is Gensler’s directive to work with the CFTC on the treatment of crypto-based securities tokens and some commodities tokens using our respective jurisdictions.

Sam Bankman-FTX and Fried’s are two exchanges that want the CFTC to be more involved in the regulation of cryptocurrencies.

In February, Bankman-Fried testified before the US Senate on his company’s collaboration with the US Securities and Exchange Commission (SEC) on derivative offerings and the role they play in regulating the cryptocurrency business.

FTX Hired An Experienced CFTC Commissioner

In November, FTX.US hired a veteran CFTC commissioner as part of its efforts to cooperate with regulators.

For his part, CFTC Chairman Rostin Behnam told the US Senate in February that his agency was prepared to deal with the challenges that the bitcoin business was facing in this country.

A rising role in the oversight of the cash digital asset commodities market is in the best interest of Behnam.

According to Behnam, the Commodity Futures Trading Commission’s (CFTC) monitoring of cryptocurrencies could be beneficial.

It is predicted that the future of cryptocurrency exchanges will be regulated just like the future of conventional financial markets, according to Gensler.

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