SEC Boss: New Crypto Bill Won’t Protect Investor’s Assets

Gary Gensler, the Chairman of the US SEC, is worried about the recent crypto bill. The crypto bill released at the beginning of June seeks to regulate the crypto space. 

However, Gensler believes that the bill is not comprehensive. He noted that it doesn’t provide enough protection for investors in the financial market. 

SEC Chairman Expresses Worry Over Recent Crypto Bill

The SEC Boss expressed his worry on Tuesday at the CFO Network Summit. He noted that;

“The SEC has been spearheading the activities of the financial market for years. We have very helpful to economic growth and investors.”

According to Gensler, entities under the regulation of the SEC may want to be outside it. Entities he cited include public companies, stock exchanges, and mutual funds. He noted that they might want to be under the regulation of the CFTC. 

The recent Lummis-Gillibrand bill aims to address various aspects of the crypto industry. Example includes regulation of tax payment, stablecoins, and exchanges. 

According to the bill, more crypto assets will fall under the supervision of the CFTC (Commodity Futures Trading Commission). Unfortunately, Gensler is not in support of this idea.

From the start, the SEC chairman has stated that virtually all cryptos are securities. As a result, they should be under the authority of the SEC. This is the reason behind its legal battle with Ripple.

Most Senators have agreed with the view of Gensler. According to the Senators, Bitcoin and Ethereum fall under commodities. And, some altcoins fall under securities.

“We are only watching out for retail investors and the public. The public are the ones who invest in these tokens with hopes of profit. That is one attribute of an investment,” he added.

CFTC Boss Believes The Agency Can Regulate The Crypto Market 

On Tuesday, the Commissioner of the CFTC, Christy Goldsmith Romero, applaud the recent crypto regulation. However, in the meeting, she stated that she had not read through the bill.

Recall that Romero was formerly an officer in the enforcement division of the SEC. At the event, she was asked if CFTC is a carefree regulator as the SEC proposed. She responded;

“Of course not. Both regulators are similar. The CFTC as an agency has enforced several regulations in the crypto industry. Both the SEC and the CFTC care about regulating market activities.”

Meanwhile, she gave some differences between both organizations. According to her, the CFTC allows the trading of more crypto products on its authorized exchanges. Presently, more than 18 crypto products are trading on 11 regulated exchanges. 

As a result, Romero believes the commodities regulator is very experienced. It has enough knowledge when it pertains to regulating crypto trading. However, she added the agency would work together with the securities regulator.