US Security and Exchange Commission (SEC) Chair, Gary Gensler, recently revealed that the commission is working on a dossier for cryptocurrencies. The main goal of the platform is to unite all US financial regulators in the regulation of cryptocurrencies. The first goal is to reach an agreement with the US Commodity Futures Trading Commission on cryptocurrencies.
The Chairman of the US Security and Exchange Commission has called on all financial regulators to unite to get a handle on cryptocurrency. He told the Financial Times that SEC wants a unified regulatory framework for cryptocurrencies to prevent crypto players from exploiting regulatory loopholes.
Now, the commission is specifically seeking a formal partnership with the US Commodity Futures Trading Commission. Chairman Gensler reiterated that this partnership would ensure transparency and robust protections for cryptocurrency trading.
Gensler's latest idea to develop regulation through unity among financial regulators comes at a time when policymakers in Washington cannot agree on a crypto framework. This rare union of the SEC and the CFTC has never happened before, as the two commissions work on different aspects of financial markets.
Meanwhile, the cryptocurrency market recently experienced a sharp drop in prices, forcing many companies out of business. The price of bitcoin dropped by more than 75% from $70,000 to just $20,000. Many cryptocurrency companies, including Coinbase, were forced to significantly reduce the number of their employees.
The SEC, which has had leading oversight of cryptocurrencies, is concerned about a bill being discussed in Washington that would give the CFTC more regulatory powers. Proponents of the bill argue that cryptocurrencies bear more resemblance to commodities than securities.