Regulation
SEC Chairman Gensler Warns of New Crypto Regulation Bill
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler called on lawmakers to reject the Financial Innovation and Technology for the 21st Century Act, a bill that aims to establish a new legal structure to adopt digital currencies. The bill will define which authorities will regulate digital assets. However, Gensler disagrees with this, as he believes the bill poses a threat to current laws and also exposes investors to more risk.
He stressed that in the current legal framework, investment contracts fall under the definition of securities, therefore within the competence of the SEC and its rules on investor protection.
Additionally, the Invoice will allow issuers of crypto investment contracts to self-proclaim their products as digital products, with the SEC having only 60 days to challenge. Gensler, who is overseeing the development of strict measures to govern the crypto space, cites several cases of fraud, bankruptcy and failure in the industry.
While the fate of the bill remains unknown, it was proposed at a time when the SEC was showing signs of approving ether spot ETFs.
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