In the United States, crypto rules have lacked clarity and comprehensiveness. As a result, digital currency exchanges have struggled to decide which currencies should be included and which should not.
Gary Gensler, the US Securities and Exchange Commission chairman, has invited the Commodity Futures Trading Commission to collaborate and identify methods to govern digital currency exchanges.
The SEC and the CFTC will collaborate to regulate cryptocurrency
Gensler claimed that if the SEC and the CFTC cooperated, they could “register and supervise platforms where trading of securities and non-securities is intermingled,” according to a speech he gave at the University of Pennsylvania Carey Law School.
The Securities and Exchange Commission’s (SEC) job is to oversee the securities of firms listed on stock exchanges. The CFTC, on the other hand, is in charge of commodity futures regulation. Futures are contracts that bind a party to exchange a commodity at a fixed price or date in the future.
Although the SEC and the CFTC have well-defined functions, digital currencies have yet to be classified as assets. As a result, there has been speculation that certain crypto tokens may constitute securities. Ripple, the business behind the XRP coin, is now embroiled in a legal battle with the Securities and Exchange Commission (SEC), claiming that XRP is a security rather than a token.
Many tokens in the cryptocurrency ecosystem, according to Gensler, are securities, although he did not specify which ones. If the SEC and the CFTC work together, the industry will be less confusing, and firms that provide crypto services will be able to operate under a clear regulatory framework.
The United States needs a well-defined set of cryptocurrency regulations
President Joe Biden of the United States issued an executive order last month requiring government agencies to collaborate to govern the cryptocurrency industry. The US cryptocurrency regulatory system will be revolutionized due to this, and it will continue to attract new enterprises.
According to FTX President Brett Harrison, many cryptocurrency firms and goods were eager to collaborate with the SEC and the CFTC, provided they could be certain of being registered and having their products offered on authorized platforms. However, the issue right now is that there isn’t a clear roadmap.