Connect with us


SEC chief reiterates call for cryptocurrency regulation




When the chairman of the Securities and Exchange Commission (SEC), Gary Gensler, took up his current post in April, the crypto industry expected a change in the position of federal agencies, which was hostile during the tenure of its predecessor towards cryptocurrencies and digital assets. He disappointed them.

Key points to remember

  • SEC Chairman Gary Gensler criticized the crypto industry during his Senate testimony on Tuesday.
  • He said DeFi is decentralized in name only and that “very many” tokens traded in the crypto markets are securities.
  • Gensler also clarified that, despite his criticism, he was not negative about cryptocurrencies.
  • He said his agency was understaffed and could use more funds.

Not only has Gensler raised new concerns and called the industry a “Wild West”, but he has also taken every available opportunity to advocate to bring the industry under the watchful eye of his agency. In his testimony to the Senate Banking Committee on Tuesday, the SEC chief reiterated these concerns and argued for putting the recalcitrant industry under his watch.

A critical appraisal

Most of Gensler’s assessments of the state of affairs in the cryptocurrency industry were negative. According to the SEC chief, only a “small number” of cryptocurrencies currently traded in the crypto markets are not securities. “Very many are,” Gensler said. This includes stablecoins, a type of cryptocurrency whose price is pegged to a fiat currency or basket of assets to minimize price fluctuations.

When asked about his reasoning for classifying stablecoins as securities, Gensler pointed to the “35 different things” defined as securities in the Securities Act of 1933. While the cryptocurrency industry is obsessed with the Howey test as described in a Supreme Court verdict to define securities, the law actually defines securities in several forms, including investment contracts, security deposits and certificates of deposit .

Decentralized finance or DeFi tokens and services have exploded in popularity this year. But Gensler said the services are decentralized in name only, and the user agreements for those services mask additional fees and charges that are not obvious to the customer. He said DeFi and crypto tokens are a “highly speculative asset class” and agreed with Senator Elizabeth Warren, Democrat of Massachusetts, that the high and unpredictable charges for DeFi services could “make crypto dangerous.”

During the hearing, Gensler also targeted Coinbase, North America’s largest cryptocurrency exchange in terms of transaction volume. Coinbase Global, Inc. (COIN) CEO Brian Armstrong accused the SEC last week of “truly sketchy behavior” for refusing to disclose the reasons for categorizing tokens in their lending product as securities. He also said the agency was “creating an unfair market” by threatening to continue crypto exchanges.

Gensler said the exchange “could have dozens of tokens that are securities” in its trading markets. “But they [Coinbase] are not registered with the SEC, ”he added, meaning that Coinbase is not subject to the same disclosure regime as other trading exchanges registered with the agency.

Despite his relentless criticism of the crypto industry, Gensler made it clear that he was not “negative or minimalist” about cryptocurrencies. “I am concerned that if the field, which I studied for 3.5 years at MIT, remains outside the framework of public policies for the fight against money laundering (AML), investor protection and tax evasion. , it will not persist, “he said.

More funding and coordination needed

Even though he was advocating for more crypto oversight, Gensler also asked for more funding for his agency. He arrived at the agency at a critical time in its existence. Technology has rendered previous rules for the formation of the capital market inadequate, and the emergence of memes stock traders has upset investor protection. According to Gensler, his agency is currently working on 6,000 projects and is understaffed. “From a funding point of view, we could use a lot more people,” he said.

When it comes to cryptocurrencies, better coordination between market regulators is needed, he said. For example, establishing a regulatory framework for stablecoins might require his branch to coordinate its efforts with bank branches. “And then there are things in the weeds, like infrastructure and guard [for digital assets], which I think we can work with Congress to clarify, ”Gensler said.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]