In an interview with Bloomberg, CFTC’s former Chairman Gary Gensler aforementioned that cryptocurrencies should fall under the regulatory purview of United States SEC. Issuers of coins wouldhave to be compelled tofitunder certainlaws, register with the SEC, and disclose specificinformationsort of adescription of the organization’s properties ormonetarystatements.
When askedwhether or notblockchain technologyought tobe regulated, Gary Genslerdeclaredthat “weshould be technology-neutral.” Hecontinued, stressingthe needto ensureinvestorsprotectionwithin certain blockchain applications including cryptocurrencies.
Adding further, Gensler said:
“Iassumethat cryptocurrencies like Bitcoin [BTC]require a lot moreprotection,and certainlya lot more protection than even the oil markets.”
Speakingconcerning thefuture developments in blockchain regulation, Genslersaidthat thereought tobe someform ofoversight — “traffic lights and speed limits” —to confirmconfidence on “crypto roads.” Gensleradded that he thinks thatthe two will coexist,butitcouldtakeseveral years tosortit throughand findthe right balance.”
Gensler words echoan announcementfrom SEC SeniorAdvisorfor Digital Assets and Innovation named ‘Valerie A. Szczepanik’,who saidthat ifyou would likethe crypto businessesto flourish, protection of investorsought tobe at the forefront.”
Speaking at a U.S. SEC and CFTC senate hearing earlier inFeb., SEC chairman Jay ClaytonsaidthatwhileeveryICO token the SEC has seenso faris asecurity, a distinctionought tobecreatedbetween tokens and major digital currencieslike Bitcoin[BTC] and Ethereum [ETH]. The definition of Ethereum [ETH] as a security has reportedly been questionable.
Even in Dec. last year, Clayton issued a public statement,concludingthat the majoritytokenssoldin ICOsarepossiblyalike securitiesunderneathU.S. law. Clayton then noted that the content of thetransactionsisa lot morenecessarythanthe formindecidingifaninvestmentis asecurity.