Speaking at the Wall Street Journal’s CFO Network Summit, Securities and Exchange Commission (SEC) Chairman Gary Gensler said the recently proposed crypto bill in the United States could undermine the present legal framework for broader capital markets, according to experts. He added that many cryptocurrency companies are releasing tokens categorized as securities, while the Securities and Exchange Commission should regulate services like offering a payout for staking. He said, “We don’t want to undermine the protections we have in a US$100 trillion capital market,” “Like behaviors should have like treatment.” Securities and Exchange Commission Chairman Gary Gensler speaks with WSJ’s @charlesforelle about key aspects of the agency’s ambitious agenda https://t.co/40z90jF6X3 — The Wall Street Journal (@WSJ) June 14, 2022 Gensler is Unconvinced The Responsible Financial Innovation Act classifies decentralized cryptocurrencies as commodities and places them under the Commodity Futures Trading Commission (CFTC) jurisdiction. Gensler is unconvinced that tokens traded on cryptocurrency exchanges aren’t securities, and the SEC isn’t looking to expand its authority. Crypto Loan Platforms During the summit, he mentioned the recent BlockFi settlement, claiming that the SEC determined that the high-yield offers were unregistered securities in that case. According to Gensler, today’s crypto loan platforms offer rates as high as 17%. While ...
