SEC Chair Gensler Backs Granting CFTC More Crypto Oversight

In order to best protect investors, regulating bodies must collaborate to establish clear policies, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler said in support of giving more cryptocurrency oversight to the Commodity Futures Trading Commission (CFTC).

“To the extent the Commodity Futures Trading Commission (CFTC) needs greater authorities with which to oversee and regulate crypto non-security tokens and related intermediaries, I look forward to working with Congress to achieve that goal consistent with maintaining the regulation of crypto security tokens and related intermediaries at the SEC,” Gensler said during a speech delivered at an SEC Speaks event organized by the Practicing Law Institute.

See also: Gensler Changes Tactics in Capitol Hill Crypto Fight

Gensler reiterated that he continues to believe that the majority of cryptocurrencies are securities and that cryptocurrency trading platforms should comply with investor protection laws and be required to register with the SEC, according to his remarks.

“Of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities. Offers and sales of these thousands of crypto security tokens are covered under the securities laws,” he said.

He also said some crypto intermediaries would have to be dually registered with the SEC and the CFTC, just as some brokers and mutual-fund firms are overseen by both agencies.

Gensler headed the CFTC from 2009 to 2014 and said he will work with lawmakers but emphasized that no power should be taken from the SEC.

“Let’s ensure that we don’t inadvertently undermine securities laws,” he said. “We’ve got a $100 trillion capital market. Crypto is less than $1 trillion worldwide. But we don’t want that to somehow undermine what we do elsewhere.”

Read more: Crypto Fight on Capitol Hill Increasingly Favors CFTC

Federal agencies and the congressional committees overseeing them have battled over who will regulate the cryptocurrency industry, PYMNTS reported. The industry’s fallout over the past several months turned the spotlight on the lack of oversight and regulation. 

Lobbying efforts by crypto firms have also intensified, with their presence on Capitol Hill becoming commonplace. Their efforts have favored regulation by the CFTC.