Sumary of SEC Chairman Outlines Regulation of Crypto Assets Relating to Security-Based Swaps:
- The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has clarified how cryptocurrencies falling under security-based swaps are regulated.
- SEC’s Regulatory Approach to Cryptocurrency SEC Chairman Gary Gensler talked about cryptocurrency regulation Wednesday before the American Bar Association Derivatives and Futures Law Committee Virtual Mid-Year Program.
- ” The SEC chairman emphasized: Make no mistake: It doesn’t matter whether it’s a stock token, a stable value token backed by securities, or any other virtual product that provides synthetic exposure to underlying securities.
- ” Gensler further noted: We’ve brought some cases involving retail offerings of security-based swaps;
- However, Gensler said more companies are in violation of securities laws.
- Gensler previously emphasized the need to regulate cryptocurrency exchanges.
- However, the SEC left bitcoin and cryptocurrency off its regulatory agenda for 2021. Early this month, U.S. Senator Elizabeth Warren asked the SEC to use its full authority to address the risks associated with crypto assets.
- She gave Gensler until July 28 to provide answers on the SEC’s authority to protect consumers investing and trading in cryptocurrencies, and determine what future congressional action was needed.