Securities and Exchange Commission (SEC) chairman Gary Gensler said the Commodity Futures Trading Commission (CFTC) should be given more authority to police stablecoins at an event in Washington, D.C. on Friday, according to a report by Reuters.
Gensler argued that stablecoins are very similar to money market markets and should be regulated accordingly, Reuters wrote.
And while the CFTC has regulatory authority over dollar-backed stablecoin issuers in the areas of fraud and manipulation, it doesn’t have “direct regulatory authorities over the underlying non-security tokens,“ Gensler pointed out.
Momentum in Congress is gaining to make the CFTC the regulator of the spot market for tokens that aren’t considered securities, such as bitcoin, while the SEC would oversee those cryptocurrencies that are considered securities.
Read more: US CFTC as Crypto’s Regulatory Savior? Crypto Firms Might Not Like What They Get
