US Crypto Bill Could Undermine Market Protections: SEC, Gensler
Table of contents
"We don't want to undermine the protections we have in a US$100 trillion capital market,"
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 this appeals to the general population, it's unclear what lies behind the ability to realize those profits. The SEC will try to find similar paths with other lending platforms and exchanges that could potentially list unregistered securities on their platforms, according to Gensler. BlockFi's settlement has turned into a path toward registration. Gensler said the SEC would do its best to find similar ways with other lending platforms and exchanges that could potentially list unregistered securities on their platforms.
