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Will the CFTC Control Crypto? Chair of SEC Drops Hints

09-Sep-2022 By: Anirudh Trivedi
Will the CFTC Contro

Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), has come under fire for his lack of explanation of the legislation governing cryptocurrencies.

Gensler did, however, make a suggestion during a speech that the SEC might give the Commodity Futures Trading Commission (CFTC) some authority to regulate digital assets.

To share authority as SEC Chair?

The Wall Street Journal reported that the SEC Chair expressed excitement about working with Congress to give the CFTC some authority. Certain digital assets, like Bitcoin, might be regulated by it. He continued by saying that the agency needs additional power to monitor and create regulations for the cryptocurrency industry.

The CFTC is likely to prevail over the SEC in controlling the digital asset market, according to a previous CoinGabbar analysis. Nevertheless, the CFTC was run by the SEC Chair from 2009 to 2014. Gensler noted that he agreed to share a job with the lawmakers so long as the SEC didn't lose its authority.

The SEC Chair emphasised the need to take care to avoid undermining securities law, which governs the $100 trillion capital market. The capital markets in the US are the pride of the world, he continued, thanks to US securities legislation.

Will the CFTC seize any crypto?

According to the source, the Senate Agriculture Committee wants to introduce legislation giving control of Bitcoin and Ethereum. CFTC currently only has the authority to regulate derivatives like futures and swaps.

A statute enabling them to control cash markets has also been requested by the CFTC Chair from Congress. However, some form of crypto will be present. While providing them with funding to undertake extra oversight.

In the meantime, the SEC Chair's most recent remarks imply that his commissioners shouldn't regulate BTC. Other digital assets, according to it, are securities that fall under its purview.

However, the commission is aggressively suing blockchain companies and cryptocurrency exchanges.