🤔 Where exactly does the new head of the SEC stand on regulating crypto?
Crypto remains a largely unregulated $1.6 trillion market.
And will it stay that way because the new head of the SEC, Gary Gensler, is a major fan of digital currencies? Probably not.
Before the SEC, Gensler researched crypto: He even developed a course about it at M.I.T. But his soft spot for Bitcoin won’t get in the way, he told Bloomberg.
He already has behind-the-scenes regulation plans: These include regulation initial coin offerings, stable value coins, ETFs, and more. The gist of the SEC’s strategy, Gensler told Bloomberg, is to protect investors against fraud.
Commodity or security?
Gensler has asked Congress to give the SEC power to regulate crypto, but a new law might be unnecessary. He believes the SEC’s powers are broad enough already for it to take action, particularly regarding the various currencies that fit the definition of “unregistered securities.”
But plenty of others are more skeptical. The Commodity Futures Trading Commission has also tried to regulate the market, and the head of the CFTC recently said the SEC has no jurisdiction over crypto.
Change is already here. The SEC charged two people for unregistered sales of $30 million of crypto. It is the first time the SEC has taken such action.