In Brief
The Trust Project is an international consortium of news organizations building standards of transparency.
Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC) has said that his agency will endorse Congress’ bid to have cryptocurrencies regulated.
Gensler added that the SEC will work with the Commodity Futures Trading Commission (CFTC) to rein in digital tokens amplifying, his calls for greater oversight of the non-security tokens and related intermediaries.
Gensler while speaking at the SECSpeaks Conference, said a lot has to be done concerning the oversight and regulation of cryptocurrency, pledging to back the CFTC and Congress to regulate the digital asset market, whose markets have plunged in recent months.
“Let’s ensure that we don’t inadvertently undermine securities laws underlying $100 trillion capital markets,” he said.
“The securities laws have made our capital markets the envy of the world.”
SEC wants to protect investors trading on platforms.
His remarks suggested the security regulators’ talks are ripe and are determined to safeguard the market integrity, protect against fraud and manipulation, and facilitate capital formation.
“In my view, regulation both protects investors and promotes investor confidence, in the same way that traffic laws protect drivers and promote driver confidence. It’s at the core of what makes markets work.”
As of now, the regulators have no power to regulate the financial market of crypto until Congress passes an act that will give them the mandate to formulate standards for digital payments reliant on cryptocurrencies which have been more vulnerable to disruptions resulting in consumers losing funds and becoming victims of fraud or unable to recover the money.
Rostin Behnam, Commodity Futures Trading Commission Chairman, requested Congress to hand out a law that would let regulators control digital assets and offer financial support to oversee the market. Leaders of the Senate Banking Committee, which has jurisdiction over banking law, led by Senator Elizabeth Warren, also asked SEC and other regulators to move fast in designing rules that protect investors, customers, and markets, and rules that they compete on a level playing field with conventional financial establishments.
Securities laws have regulatory loopholes on cryptocurrency
If Congress comes forth with a law on crypto, it will be a big step in the acceptance of crypto and will provide a route for officials’ approval as an essential foundation for financial and economic activity in the coming decade.
Market movers have taken to social media to react to the developments, with the CEO of FTX commending the effort of the regulators.
“NOT LEGAL ADVICE, but I do think that having a federally regulated spot market would go a long way!” tweeted SBF FTX
Currently, the SEC administers solely traded securities and is seeking to consider how best to record and control platforms where the trading of securities and non-securities is intertwined and those that are administered by CFTC and will jointly address platforms that might trade both crypto-based security tokens and some commodity tokens, using our respective authorities.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Remmy Bahati, is a crypto and technology reporter at BeInCrypto and resides in New York, USA. She has a Master of Science in Journalism from Columbia University in New York City. She also works for Law360 as a Legal News Assistant monitoring the United States Congress, federal and state courts. Not only that, but he also worked for the United Nations in the global communications department. A television producer, video editor and writer, she has contributed to CNN, Columbia News Service, New York Times digital, NBS TV, TRT World, BBC, Huffington Post and Citizen TV.
Donald Trump’s digital trading cards have become a target for cybercriminals, who are using fake websites and phishing emails to steal personal and financial information.
WeatherlyFred Thiel, CEO of Marathon Digital, a U.S. cryptocurrency mining company, said that Bitcoin mining is a national security issue. Russia has mined 54,000 bitcoins under U.S. sanctions, and the Putin government has received huge tax revenue.
AlexThe British government has submitted a bill to Parliament hoping to classify cryptocurrency assets as a new form of property, which could generate £34 billion in revenue each year.
MiyukiCryptoQuant analysis shows that Bitcoin's trend is decoupled from gold, investors seem to favor gold, and cryptocurrencies continue to be in a bearish phase.
WeiliangPope Francis addressed Singapore’s leaders, urging the nation to use its global position for peace and unity. He emphasized that while technological advancements like AI should promote human connection, they should not lead to isolation or diminish genuine relationships.
WeatherlyPeople familiar with the matter revealed that Hong Kong is studying whether to allow the Hong Kong Securities and Futures Commission and the Customs to jointly participate in the supervision of over-the-counter virtual asset trading services.
AlexResidents near Granbury, Texas, are protesting Constellation Energy's plan to build a new power plant due to ongoing noise pollution and health issues from Marathon Digital’s nearby Bitcoin mine. The proposed power plant expansion would significantly increase air pollution, exacerbating local concerns about environmental and health impacts.
AnaisMeta is changing how it labels AI-edited content by moving the "AI info" label to a less visible spot, raising concerns that it may confuse users as AI tools become more advanced. Despite this, Meta will still prominently display labels for fully AI-generated content to ensure transparency.
JoyeToro will stop trading most cryptocurrencies for U.S. users as part of a $1.5 million settlement with the SEC. The platform will only offer Bitcoin, Bitcoin Cash, and Ethereum in the U.S., while its global operations remain largely unaffected.
WeatherlyOpenAI has launched the o1 model, designed to improve reasoning and problem-solving in areas like math and coding. While more accurate than previous models, it comes at a higher cost and still lacks certain functionalities like web browsing and image processing.
Joy