Gensler appeals for one rulebook in negotiations with CFTC over crypto regulations

SEC Chair Gary Gensler is working on an MoU with the CFTC on crypto regulations

By Shashank Bhardwaj

Image: Bill Clark / POOL / AFP

Gary Gensler, Securities and Exchange Commission’s (SEC) chair, is working on a Memorandum of Understanding (MoU) with the officials of digital asset market regulator Commodity and Futures Trading Commission (CFTC) concerning digital asset regulations.

In an interview with Financial Times, Gensler said that the agencies could come together to ensure market integrity. He said that securities and commodities were ‘intertwined’ in the current trading scenario and added, “ I’m talking about one rule book on the exchange that protects all trading regardless of the pair — [be it] a security token versus security token, security token versus commodity token, commodity token versus commodity token.”

The collaborative outlook and Gensler’s efforts to seek an agreement over it with the CFTC come in the wake of a number of legislative moves introduced in the past months toward a more comprehensive digital asset regulatory framework.

It is also notable that the bills that have been introduced so far grant greater authority to CFTC. The Digital Commodity Exchange Act introduced in April, and the Responsible Financial Innovation Act presented in June are two such examples. Senate Agriculture Committee chairman Debbie Snow and Committee member John Boozman are also working on a regulatory bill for cryptos that will expand CFTC powers. The Senate Agriculture Committee oversees the CFTC.

Gensler headed the CFTC from 2009 to 2013. He has expressed scepticism over the changes occurring in the status quo of the market regulator. SEC, on the other hand, has been the foremost authority taking care of crypto regulations but has earned flak from lawmakers and dissatisfaction from the industry for allegedly wanting to enact regulations via enforcement.

Over the years, US regulators have collected over $3.35 billion from the crypto industry via enforcement actions, and 70 percent of the sum has gone to the SEC. While crypto leaders have been vocal about their criticism of the SEC, they have demanded clearer regulations.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

Crypto wallet users are warned as scammers might get active during the potential Ethereum hard fork