This article comes fromThe Block, original author: Michael McSweeney
Odaily Translator | Nian Yin Si Tang
Odaily Translator | Nian Yin Si Tang
- US SEC Chairman Gary Gensler spoke about crypto regulation at an event on Tuesday.
- His remarks show that the SEC is looking at major trends in the crypto space today, including DeFi, stablecoins, etc.
- Notably, he wants congressional legislation to focus on "encrypted trading, lending, and DeFi platforms" and grant regulators more powers to oversee the encrypted ecosystem.
“Right now, we don’t have enough investor protection in crypto,” Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), told the Aspen Security Forum on Tuesday.
These were prepared in advance and published by the SECstatementstatement, representing perhaps Gensler's broadest commentary on the topic of regulation and encryption to date, emphasizing that it was a personal statement and not representative of the institution itself. Also, some of his comments have been published elsewhere — for example, Gensler has publicly stated that he wants more regulation of exchanges,and seeks to cooperate with Congress on this issue
— and Tuesday’s speech spelled out the agency’s regulatory focus on the crypto industry under his leadership.
Indeed, while Gensler describes himself as "technology neutral," he also claims to be "by no means public policy neutral."
Gensler's presentation focused on a few key areas: tokens classified as securities, trading and DeFi platforms, stablecoins, and crypto-related financial products such as exchange-traded funds (ETFs).
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Exchanges and stablecoins "on the agenda"
On the first topic, Gensler referred to his predecessor Jay Clayton's opinion that "every ICO I've ever seen is a security".
“I find myself agreeing with Chairman Clayton,” Gensler said. “Generally speaking, people buy these tokens in anticipation of profit, and there is a small group of entrepreneurs and technologists who are nurturing these projects. I believe that in the current crypto market , there are many tokens that may be unregistered securities without the necessary disclosure or market oversight.”
He also looked at so-called equity tokens, which have drawn the attention of regulators around the world in recent months.
“One thing is for certain: whether it is an equity token, a stable value token backed by a security, or any other virtual product that provides comprehensive exposure to the underlying security. These products are subject to securities laws and must operate within our securities regime."
Next, Gensler turned to cryptocurrency trading platforms, saying: “These crypto exchanges are not just about securities law; some platforms may also be about commodity law and banking law.” In his comments, he refers to centralization and decentralization market.
“A typical trading platform has more than 50 tokens. In fact, many platforms list more than 100 tokens. While the legal status of each token depends on its own facts and circumstances, listing 50 or 100 It is extremely unlikely that any platform for the token will not have a security,” Gensler said, going on to note:
“Unlike other trading markets, where investors trade through intermediaries like the NYSE, people can trade on crypto trading platforms without a broker – 24 hours a day, 7 days a week, globally. In addition, while many overseas platforms say they do not allow access to U.S. investors, there are allegations that some unregulated foreign exchanges provide trading services to U.S. traders using virtual private networks. There are significant gaps in investor protection for buying, selling and lending cryptocurrencies on the platform.”
Gensler “There is no doubt that with respect to securities on these trading platforms, under our laws they must register with the SEC unless an exemption is met,” Gensler continued, “If a lending platform is offering securities, it is also under the jurisdiction of the SEC scope."The size of the stablecoin ecosystem was also mentioned
, stating that “nearly three-quarters of transactions on all crypto trading platforms occur between stablecoins and other tokens.”
“Thus, the use of stablecoins on these platforms may be helpful to those who seek to sidestep a range of public policy objectives — anti-money laundering, tax compliance, sanctions, etc. — associated with our traditional banking and financial system,” he continued "This also affects our national security. In addition, these stablecoins may also be securities and investment companies. To some extent, we will apply the Investment Company Act (Investment Company Act) and other federal securities to these products. comprehensive protection of investors.”
“I anticipate that there will be filings for exchange-traded funds (ETFs) under the Investment Company Act ('40 Act). When combined with other federal securities laws, '40 Act provides important investor protections, "Given these important safeguards, I look forward to the staff's review of these applications, especially if they are limited to CME-traded bitcoin futures," he said.
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Seek more authorization from Congress
“Certain rules related to cryptoassets are well resolved. The test to determine whether a cryptoasset is a security is clear,” Gensler said, “However, there are some gaps here: We need additional congressional authorization to prevent transactions , products and platforms are caught in regulatory loopholes. We also need more resources to protect investors in this growing and volatile industry.”
He went on to say:
He went on to say:
How these resources and powers will be obtained remains to be clarified. Senators are currentlydiscussdiscussThe scope of crypto “broker” tax filing requirements as part of the proposed infrastructure bill. Last week, Rep. Don Beyer of Virginia submitteda bill
, focusing on the regulation of digital assets and stablecoins.
Gensler brought up the topic of national security again toward the end of his prepared remarks.
