SEC Refrains from Working on Cryptocurrency Regulations for Now
SEC Refrains From Including Bitcoin, Cryptocurrencies in SEC’s List
Expectations that the SEC Chair Gary Gensler will start working on providing guardrails for crypto investors right after assuming office were high. Despite this, the Securities and Exchange Commission has not put cryptocurrency high on its agenda.
According to the regulatory agenda released by the SEC, the immediate work of the agency will not include the crypto space. Instead, the main efforts of the agency for the spring and summer will be directed toward hammering out rules for special purpose acquisition companies (SPACs), short sale disclosures and money market reforms. In addition, the Securities and Exchange Commission will focus on crafting rules over the gamification of trading platforms, amongst other issues.
In recent months, SEC Chairman Gensler has mentioned the need for regulations over the crypto market in every speech he had given. Gensler warned investors of the increased risks in the unregulated cryptocurrency market. In spite of this, digital assets will most likely have to wait until at least autumn to get the attention of the agency.
“To meet our mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation, the SEC has a lot of regulatory work ahead of us,” Mr. Gensler commented. “I look forward to collaborating with my fellow commissioners and the dedicated staff to propose and finalize rules that will strengthen our markets, increase transparency, and safeguard investors.”
SEC Chairman Gary Gensler Considers Crypto Regulation Necessary
Mr. Gensler had stated multiple times he intends to work alongside Congress to implement rules that will protect crypto investors. Protection from fraud, hacks, money laundering and the financing of illicit activities were mentioned.
During his hearing prior to his official appointment as the SEC Chairman, Gary Gensler stated that the SEC has “a lot of authority” in the securities space. Also, he said that “a number of cryptocurrencies fall within that jurisdiction.”
There are areas, however, that are vulnerable to risks and attacks, including Bitcoin trading on unregulated exchanges. Last month, Mr. Gensler turned to Congress with the request to pass cryptocurrency legislation that would protect investors.