Industry analysts said that expanding CFTC (Commodity Futures Trading Commission) is beyond SEC (Securities and Exchange Comissions) digital assets’ reach. SEC too is working to exercise in crypto. Patrick McCarty, crypto lecturer at Georgetown University’s law school said that the exchanges want to be regulated by the SEC.
Gary Gensler is President Joe Biden’s top notch crypto expert. The SEC is under his rule. Gensler taught a course in this subject. He is indeed interested in crypto and blockchain technology. But he is not an industry booster. In this part, he has a concern on how the exchanges may violate the law by unregistering securities.
The government actually finds another complication in regulating crypto.
A New Jersey Democrat, Josh Gottheimer confessed that it is actually confusing and chaotic. Gottheimer works on a bill to regulate stablecoins. However, spokespeople at the SEC and CFTC denied it. Therefore, under Mr. Biden’s executive orders, he had been cooperating with dozens of agencies and government offices.
They are U.S. Department of State, the U.S. Environmental Protection Agency, and the Office of Science and Technology Policy. Major banks regulators and the Office of the Controller of the Currency argued that if stablecoins do not have stable back up, it will be a subject to examiners.
Crypto lending is actually desirable, The Consumer Financial Protection Bureau is into it. The SEC’s radar also covers both crypto lending and stablecoins. A Virginia Democrat, Representative Don Beyer argued that the executive order does not delineate regulatory obligation between SEC and CFTC.
FTX demands CFTC to have clearer authority over commodities considered coins. Because digital assets like Bitcoins often fall in the commodities bucket. The value majorly depends on money investment as well as successful technology projects. CEO of Crypto Council for Innovation, Sheila Warren, argued that it is a big challenge for Congress and watchdog to settle this industry’s framework.
