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Senator grills SEC chair Gensler in cryptocurrency at Senate hearing

Gary Gensler, Chairman of the Commodity Futures Trading Commission (CFTC), will speak at a Senate Banking Commission hearing on Tuesday, July 30, 2013 in Washington, DC, USA.

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Dissatisfied with the apparent lack of progress, lawmakers grill the Securities and Exchange Commission chairman on Tuesday Gary Gensler Over the regulator’s plans to regulate the cryptocurrency market.

Gensler to appear in front of Senate Banking Commission Tuesday 10amIs expected to answer some questions about Bitcoin, Stablecoin and other digital assets from senators on both sides of the political aisle.

Prior to the hearing, Wall Street’s highest regulatory agency said the crypto market Swath operates outside the SEC’s regulatory framework to protect investors and customers from illegal activity.

“We do not have sufficient investor protection in financing, issuing, trading or lending cryptocurrencies,” Gensler said in a prepared statement. “Frankly, at this point, it’s like the Wild West and Old World” buyers beware “that existed before the securities law was enacted. This asset class is full of fraud, fraud and abuse in certain applications. “

He added that the SEC is eager to expand its existing authorities, obtain parliamentary approval, and expand the Commission’s jurisdiction to close the gap in crypto market crackdowns.

In his statement, Gensler said that the SEC will provide an investment instrument that provides not only the storage of virtual assets, but also exposure to crypto tokens, crypto trading and lending platforms, stablecoins, digital assets or crypto derivatives. He said he was seeking the help of a legislator to oversee the sale.

Whether it’s enough to ease the Commission’s Republicans, who have demanded that the SEC sanction the crypto market and step up efforts to explain the benefits they offer to investors for months. Unknown.

Ranking members Pat toomeyAccording to Republican aides, Republican aides will delve into Gensler to explain why it takes time to support these markets and why the SEC dislikes the approval of various crypto assets. ..

The aide spoke to CNBC on condition of anonymity and was free to talk about the party’s leadership’s private thoughts before public testimony.

Cryptographic regulations are relatively new to the SEC. Gensler reiterated that Congress needs to pass legislation to expand the power of the Commission in order to effectively manage the $ 2 trillion market for Bitcoin and other digital currencies.

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“What we want to do is provide some of the basic protection against fraud and tampering. The trading platform they use is protected as if they were currently trading on the New York Stock Exchange. It is not under the regulatory system to do so, “says Gensler. Told CNBC in August..

At the time, Gensler said he hoped Congress could empower the SEC to officially register the trading platform, but some resisted his first request.

Last week’s SEC in a move that frustrated crypto proponents Delayed the decision again Whether to approve the Chicago Exchange’s application to list and trade shares in VanEck’s Bitcoin Trust.

Regulators have been punting applications for months, being seen as the raft bell of a similar fund. This offended those who wanted Gensler to take command of the SEC to mean a quicker decision on digital assets.

Republicans tend to want a quicker decision from Gensler to take advantage of the speed and efficiency of digital assets, but Democrats call for accountability and oversight in what Gensler calls the digital “Wild West.” I emphasize it.

Democrats like Ohiosen. Sherrod Brown, Chairman of the Commission, and Senator Elizabeth Warren of Massachusetts acknowledge that digital assets may have attractive use applications, They also emphasized the need for attention.

The hearing on Tuesday is also the first hearing of the Commission with Gensler since the SEC approved new Nasdaq rules requiring exchange-listed companies to achieve specific race and gender goals. Mark.

Nasdaq regulations require that the company’s board of directors meet gender and racial diversity requirements or explain in writing why the company did not. This move has frustrated Republicans on the Commission. They said a clear focus on race and gender could be very costly.

The Democratic Party disagreed.

“Corporate America must do more to increase the diversity of its boardrooms,” Brown said in August following a SEC decision. “I commend the SEC and Nasdaq for recognizing the interests of companies and shareholders in a more comprehensive and equitable economy.”

Senator grills SEC chair Gensler in cryptocurrency at Senate hearing

Source link Senator grills SEC chair Gensler in cryptocurrency at Senate hearing

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