SEC chief backs expanding CFTC powers in the crypto market

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The chair of the SEC, Gary Gensler, would back Congress granting the CFTC additional powers to regulate the cryptocurrency market.

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During a speech at the Practising Law Institute, the official noted:

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“I believe that out of nearly 10,000 tokens in the crypto market, the overwhelming majority are securities. The offers and sales of these assets fall under the relevant laws.”

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These coins, as well as the intermediaries offering them, are subject to SEC regulation, Gensler stressed.

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However, in some cases the regulator’s powers overlap with the ‘sister’ CFTC, which needs broader authority to supervise the crypto market.

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“Given that crypto intermediaries may need registration with both the SEC and the CFTC, I would note that this is already being carried out in the broker-dealer and investment adviser space,” said Gensler.

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According to him, stablecoins “have characteristics similar to money market funds” and to other securities. Issuers of “stablecoins”, as well as providers of other tokens, he urged to discuss activities with the SEC to avoid violating the law.

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Earlier, CFTC head Rostin Benham announced the creation of the Office of Technology Innovation, which will regulate the crypto industry.

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Meanwhile, Gensler has repeatedly stated that the majority of tokens fall under the definition of securities and the SEC’s jurisdiction.

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