It has been claimed that Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), thinks the CFTC ought to have additional regulatory control over stablecoins.
Reuters quotes a recent presentation by Gensler at a Georgetown University forum in which he said that stablecoins should be regulated like money market funds because of their similarity to these funds.
“A bigger amount of power for the CFTC is something I feel is required. They do not have jurisdiction over the coins’ underlying non-security assets at this time.”
Last month, Gensler spoke in front of national legislators to argue that the roughly 10,000 cryptocurrency tokens are securities, and so, the securities rules must apply to their transactions. Gensler has expressed a desire for these cryptocurrency issuers to file SEC registrations for their coins.
Chair of the Commodity Futures Trading Commission (CFTC) Rostin Behnam testified shortly after Gensler’s statement that the CFTC’s monitoring of the financial digital sector is a natural extension of the agency’s existing responsibilities.
“As I have indicated in public on several occasions, including in front of this committee, and as has been acknowledged by federal courts, a great number of digital assets are considered to be commodities. The Digital Commodities Consumer Protection Act (DCCPA) acknowledges that the CFTC is the appropriate regulatory body for the digital asset commodity market due to the competence and experience it has in this area.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.