The White House has released the first cryptocurrency regulatory framework. The framework, released on Friday, aims for more comprehensive regulation.
White House releases first framework for cryptocurrency regulations
According to the reports, the guidelines outline how the financial services industry needs to evolve to make cross-border transactions simpler. It also aims to put an end to frauds in the cryptocurrency industry. The recently implemented framework is in line with the March regulation. However, US President Biden has asked federal agencies to examine the advantages and disadvantages of the cryptocurrency industry.
According to the report, the new orders give more influence to regulators like the SEC and CFTC. However, it does not give full authority to a particular agency or institution. Which institution would experiment with cryptocurrencies or emerging asset classes was a matter of curiosity because of their perspectives.
The report also encourages the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) to look into the complaints. As a result, the inspection and enforcement of unfair and abusive practices will be increased. Thus, a stronger cryptocurrency framework is aimed.
Will the SEC win the legal competition?
According to Brain Deese, Director of the US Economic Council, the new cryptocurrency regulations will put the country in a leadership position for the governance model. The Public Awareness Commission will guide financial education. The consumer will be aware of the risks developing in the ecosystem of cryptocurrencies. Earlier, SEC Chairman Gary Gensler made a suggestion that the regulator could give the CFTC some authority over crypto regulation.
Gensler recognized the importance of collaborating with Congress to strengthen the CFTC. The CFTC may soon have more jurisdiction over some cryptocurrencies like Bitcoin. Gensler also emphasized that the SEC wants to oversee the crypto market. He pointed out that he still needs more power to create regulations.
CFTC chief launches work for more cryptocurrency regulation
However, SEC Chairman Gary Gensler doubled down on his stance that crypto tokens are securities. CFTC Rostin Behnam said on Thursday that the CFTC is ready for the crypto regulator. In his statement to the Agriculture Committee, Behnam said:
Market volatility and its impact on individual customers highlight the urgent need for regulatory clarity and market protections.
Gensler reiterated that most cryptocurrencies and companies have to work with the SEC. He doubled down on the view that he would have to work with his agency in some capacity:
I believe the vast majority of about 10,000 tokens in the crypto market are securities. Offerings and sales of these thousands of crypto security tokens are covered by securities laws, which require these transactions to be recorded or made under an existing exemption. Therefore, I asked SEC staff to work directly with entrepreneurs to register and issue their tokens as securities when appropriate.
cryptocoin.comWe have discussed Gary Gensler and Rostin Behnam’s statements in this article.
