Next SEC chairman suggests strengthening cryptocurrency regulations… “Scams and manipulations should be prevented”
Joe Biden’s administration’s first chairman of the Securities and Exchange Commission (SEC) has announced his intention to strengthen cryptocurrency regulations.
According to CoinDesk, Gary Gensler attended a confirmation hearing held by the Senate Banking Committee on March 2, 2021 (local time), and proposed regulatory measures to prevent cryptocurrency market fraud and manipulation and protect investors. He said he would review.
Gary Gensler responded to Senator Sherrod Brown’s question on how to approach cryptocurrency regulation: “We plan to uphold the principles of capital formation and investor protection and maintain a technology-neutral position.”
“Cryptocurrency can support cheap domestic and international payments and has brought new ideas to financial planning and financial inclusion,” said Gensler nominee. Blockchain, the underlying technology, was evaluated as a technology that can be used in various fields such as medical records, trade finance, and data collection as a’catalyst for innovation’.
Priority principle’investor protection’
Gensler is known as an industry-friendly person who gave lectures on cryptocurrency and blockchain at MIT University. At the same time, he was also a regulatory advocate who led the establishment of derivatives regulations when he was in public office. He stressed the balance between encouraging innovation and tightening regulations, saying that new issues in investor protection should also be noted.
“We will work with our fellow members to ensure investor protection while promoting new innovations,” said the nominee for SEC Chairman. He added that it will examine whether it is subject to the U.S. securities laws and check whether there are specific investor protection laws applicable to cryptocurrency exchanges.
“If something is an investment contract, the SEC is under the jurisdiction, and if it is a commodity such as’Bitcoin (BTC)’, the Commodity Futures Trading Commission (CFTC) is under the jurisdiction. Congress may decide how to supervise it,” said Gary Gensler. Explained.
Appointee Gary Gensler did not suggest a specific policy plan, but stressed that “it is important for the SEC to provide relevant guidance and clarity as technology and markets are constantly changing and evolving.”
As for investor protection issues, he mentioned the entrustment of cryptocurrency and the guarantee of exclusive control of the regulatory authority over digital assets. It has announced that it will actively engage in market fraud and manipulation issues. “Some markets that operate mainly overseas are prevalent in fraud and scams,” he said. “The SEC will have to make sure that the cryptocurrency market is free from fraud and manipulation.”
Investigation of the situation of’Game Stop’
Appointee Garry Gensler also predicted an investigation into the GameStop incident that caused the stock price to plunge in January 2021 of the SEC. Reddit bulletin boards, a platform that gathered individual investors, and’Robin Hood’, a stock trading app that is widely used by individual investors, are expected to be the subject of the investigation.
The’GameStop Situation’ is an event in which ants bought a large number of stocks to raise the stock price against the short-selling force that promotes the decline in GameStop stock prices. Robin Hood randomly blocked the purchase of some stocks that had soared in the game stop situation, and took a move that seemed to raise the hand of short selling forces, which became controversial.
“We need to investigate the impact of free apps that encourage trading,” said Gensler, and said he would closely check the stock platform for investor incentives or other inappropriate market manipulation.
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Who is Gary Gensler?
Gary Jensler is a former CFTC chairman, a government agency and financial sector expert. He served as the chairman of the Barack Obama Administration’s Commodity Futures Trading Commission (CFTC) after serving as a finance minister during the Clinton administration. It played a leading role in strengthening the regulation of derivatives.
U.S. President-elect Joe Biden chose Gary Jensler as head of the economic policy transition committee on November 10, 2020. On January 18, 2021, he was officially appointed as the new SEC chairman.
The Gansler designator is known for being a blockchain and cryptocurrency friendly person. Since 2018, he has taught blockchain and cryptocurrency at MIT. At the time, he said, “Cryptocurrency technology is essentially a new technology that can strengthen the existing financial system.” Ripple, Ethereum, and Libra were said to be’securities’.
SEC Chairman Change, How Will It Affect Cryptocurrency Industry?
The cryptocurrency industry has high expectations for the next SEC chairmanship. The SEC is exerting a lot of power in key sectors such as Cryptocurrency Disclosure (ICO), ETF approval, and listing of cryptocurrency companies. The impact on future cryptocurrency regulations is also significant.
It has been stigmatized as a’black hole of cryptocurrency innovators’, including large cryptocurrency projects such as EOS developer Block One and Telegram, as well as numerous ICOs.
The industry predicts that if Garry Gensler, who has a high understanding of cryptocurrency and blockchain, becomes the chairman of the SEC, the Bitcoin Listed Fund (ETF) or Ripple lawsuit will face a new phase.
“Gary Gensler has a deep understanding of cryptocurrency and has been a strong supporter of Bitcoin for many years,” said Jake Chervinsky Compound’s legal adviser on January 13, 2021. “The policy may change toward supporting the Bitcoin ETF. “He said.
Ripple CEO Brad Garlinghouse, who is suing SEC and securities law violations, said, “We are ready to cooperate with SEC officers, broader the Biden government, to uncover the path to innovation in US blockchain and cryptocurrency.” .
SEC Chairman Jay Clayton, who has opposed the approval of the Bitcoin ETF, and Acting SEC Executive Director Mark Burger, who has led the Ripple lawsuit, have left the agency.
In a joint letter to the court on February 15, 2021 stating that it had not reached an agreement with the SEC, Ripple also expressed expectations for cooperation with the SEC after the reorganization, saying, “This settlement discussion was mainly conducted with the heads of the departments who served at the time of the Trump administration.” did.
The appointment of Garry Gensler is expected to proceed smoothly. The Senate Banking Committee is reporting bipartisan support for the nomination, and there is no known resistance to the approval.
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