SEC Urges Congress to Pass Cryptocurrency Legislation to Protect Investors
The Securities and Exchange Commission has urged Congress to pass cryptocurrency legislation to protect investors. The SEC’s top securities lawyer, William Hinman, said that “all investors should take note,” and the SEC commissioner, Elisse Walter, went so far as to say that “cryptocurrency-related investments can be risky and investors should be wary of the potential for substantial losses.”
While the debate continues on the future of cryptocurrency, the SEC is moving ahead. Yesterday the Commission published a report on the potential societal benefits and risks of the cryptocurrency market. The report specifically addresses the need for new rules to protect investors.
The SEC recently sent Congress a letter encouraging them to pass cryptocurrency legislation to protect investors. Cryptocurrency has been in the public eye for a few years now, but most people still don’t know what it is. It’s an exciting new technology that stands to revolutionize the way money is handled, and the SEC wants to make sure the right rules are in place to protect investors and the market.. Read more about is cryptocurrency legal and let us know what you think.
The US Securities and Exchange Commission (SEC) has called on Congress to pass legislation on cryptocurrencies to protect investors, the new SEC chairman said. The securities regulator is also working with the Commodity Futures Trading Commission (CFTC) and the US Treasury to combat criminal activity facilitated by cryptocurrencies, the president said.
SEC works with CFTC, Treasury to regulate cryptocurrencies, urges Congress to passlegislation
New SEC Chairman Gary Gensler has called on Congress to take action on cryptocurrency legislation, he told the House Appropriations Subcommittee on Wednesday. Gensler told the subcommittee that there are gaps in the regulation of cryptocurrencies like Bitcoin and Ether. He pointed out that there are now thousands of cryptocurrencies and many of them operate as unregistered securities: We have only been able to identify 75 cases, and there are still a few that do not qualify. Gensler said the most pressing problem in regulating the cryptocurrency space is the lack of regulatory oversight of cryptocurrency exchanges. He said he wants to work with Congress to provide protections for investors on the platforms where these products, sometimes commodities, sometimes securities, are traded. The chairman went on to give an example of front-running, where a cryptocurrency exchange can exchange order information that allows an investor to trade ahead of a cryptocurrency transaction, making purchases more expensive for other investors. He confirmed: Without a cop with a baton and some traffic rules, marketers can get ahead of your orders. On the other hand, the chairman said that the SEC is working to protect against fraud and manipulation on traditional exchanges, but the same protection does not exist for cryptocurrency exchanges. He stressed that the SEC is working to provide exchanges where crypto assets are traded the same protections that can be expected from the New York Stock Exchange or Nasdaq. His statement about more oversight of crypto exchanges echoes a similar statement he made at a Financial Industry Regulatory Authority (FINRA) conference last week, when he said crypto exchanges needed more regulation. Gensler also confirmed that the SEC is working with the Commodity Futures Trading Commission (CFTC) and the U.S. Treasury Department to combat criminal activity facilitated by cryptocurrencies. He testified: They attach great importance to the fight against money laundering and protection against illegal activities. Last week, the Treasury Department unveiled Biden’s tax proposal, which would require companies to report crypto-currency transactions over $10,000 to the Internal Revenue Service (IRS) as part of a broader fight against tax evasion. Bitcoin News reported this week that the Biden administration plans to increase oversight of cryptocurrencies to protect investors and prevent illegal transactions through cryptocurrencies. Meanwhile, federal regulators are working on a unified regulatory framework for cryptocurrencies, as mandated by the Biden administration. While Gensler has called on Congress to take action on cryptocurrency legislation, Congressman Jim Himes recently said his colleagues lacked a deep understanding of cryptocurrencies. As a result, he does not expect Congress to pass legislation on crypto-currencies anytime soon. How do you feel about the SEC calling on Congress to pass a crypto currency law to protect investors? Let us know your comments in the section below.
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Biden, Biden administration, CFTC, Congress, crypto-currency legislation, crypto-currency oversight, crypto-currency regulation, crypto-currency exchanges, crypto-currency regulation, investor protection, SEC, U.S. Treasury Department. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.In this article, I will discuss the most significant steps the SEC has taken towards protecting investors from scams in the cryptocurrency market. In April 2017, the SEC issued an alert on ICOs. Since then, the agency has been very active in protecting investors from fraudulent ICOs. The SEC has made it clear that, if you offer or sell any security in the US, you must follow the securities laws.. Read more about best upcoming cryptocurrency and let us know what you think.
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