SEC to propose a flexible framework for registering cryptocurrencies

SEC officials advocate a flexible approach to registering digital tokens as securities. The statement appears in the transcript of Gary Gensler’s upcoming testimony before the U.S. Senate.

“I asked staff … to find a way that allows both assets in securities status and exchange-traded commodities to trade side by side. Given their nature, I recognise that it is appropriate to exercise flexibility in applying the existing disclosure requirements,” the document says.

In the forthcoming testimony, Gensler will reiterate the position that the majority of crypto assets are securities and that industry participants should register with the agency “regardless of whether they call themselves decentralised.”

The chair of the SEC described stablecoins as “money-market shares or another type of security,” which are also subject to regulation and registration by the Commission.

In September, the agency head stated that he would back granting Congress additional powers to regulate the cryptocurrency market CFTC.

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

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