The US Securities and Exchange Commission leader has weighed in on the Lummis and Gillibrand policy because it would undermine investor protections.
Crypto investors constantly observe with concern and fear how the prices of cryptocurrencies keep crumbling down in the market and start to wonder how much the crypto will approach and how to deal with the crypto winter. Bitcoin is dancing around USD 20,509, crashing in a single day at least 8.36% and 70% of its maximum price achieved in November 2021.
The president of the SEC, Gary Gensler, highlighted his views on the issue at the summit of The Wall Street Journal network of financial directors, where he reflected on the current situation regarding the subsequent Crashdown in crypto prices.
When asked if the recent drop in crypto prices addressed a new urgency to the SEC fears about the current market panorama, Gensler stated that the problem stands out, but the problem has been there before.
The Crypto Bill Proposed by Lummis
Likewise, the head of the SEC referred to the crypto regulation bill sent by US Senators Cynthia Lummis and Kirsten Gillibrand last week. Gensler said he would prefer to have a conversation with the legislators first but the conversation must get held from his point of view.
The policy, as it stands, would give responsibility for different sectors of the crypto market to many entities and address many other factors, such as generating a tax break for small crypto operations. The concern with a law like this one is that it gives the same mission to other entities while it takes some crypto out of the control of the SEC.
Gensler expressed that most crypto exchanges list hundreds of tokens and that it is unlikely that all of them, 100%, are not securities.
Gensler said they do not plan to expand their jurisdiction, but these tokens got offered to the public, and the public is planning a better future with them. Those are the standard features of a typical investment contract.
The positive aspect of the bill is that the document would grant the required regulatory clarity on factors linked to digital assets for its subsequent approval in the United States Senate.
That is what says Michael Saylor, the billionaire businessman who owns MicroStrategy, the company that currently has more than 127,000 bitcoins in its balance.
According to the CEO of Microstrategy, there is no doubt that the bill “will receive many benefits from regulatory clarity that will make easy and boost the participation of traditional banks, public entities, and institutional investors. This improvement would make the entire digital asset industry grow exponentially.
By: Jenson Nuñez
