SEC Chairman Demands One Crypto Rules Book

SEC Chairman Demands One Crypto Rules Book

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, reportedly proposed "one rule book" for the regulation of crypto assets. Gensler stated, "If this business is going to move forward, it will establish some better trust in these markets.

To prevent oversight gaps in the cryptocurrency industry, he is trying to reach agreements with other financial regulators, such as the Commodity Futures Trading Commission (CFTC).

He elaborated that the rule should safeguard investors from fraud, front-running, and manipulation.

The SEC chief said that he and his CFTC counterparts are drafting a "memorandum of understanding," which would be a formal agreement to ensure that trading in digital assets has enough safeguards and transparency. He claimed that if a commodity token is published on a platform within the securities regulator's control, the SEC would "hand that information over to the CFTC."

Gensler issued a warning last week about "too good to be true" crypto items. Additionally, he recently warned users that cryptocurrency exchanges frequently trade against them. The failure of the cryptocurrencies Terra (LUNA) and Terrausd served as a warning to investors, and the SEC chairman warned that many tokens will follow suit (UST).

For focusing on enforcement while regulating crypto assets, Gensler has come under fire. Hester Peirce, a commissioner of the SEC, stated in May that there will be long-term consequences since the securities watchdog failed to properly regulate cryptocurrencies.