SEC to start working on flexible approach to cryptocurrency registration

The commission's position before the US Senate will be presented in detail by its head, Gary Gensler

15.09.2022 - 14:50

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What’s new? Securities and Exchange Commission (SEC) experts have proposed a flexible format for registering digital tokens as securities. Details are contained in the transcript of the upcoming speech of the head of the regulator, Gary Gensler, before the US Senate. He said there is a need to find a way to allow for appropriate flexibility in the application of existing disclosure requirements.

Transcript of Gensler's speech

What else will Gensler talk about? The SEC chairman's upcoming speech is based on the position that most cryptocurrencies are securities. Therefore, market participants must register with the agency “regardless of whether they call themselves decentralized.” Gensler noted that stablecoins are a “money market fund or another type of security” that should be subject to regulation and registration with the SEC.

He said the commission's staff is working on an approach that would allow tokens in the status of securities and exchange-traded commodities to be traded on the same market.

Earlier, Gensler said he would support a bill to transfer more oversight authority over certain cryptocurrencies to the Commodity Futures Trading Commission (CFTC).

On September 1, the SEC and CFTC began a public discussion on the regulation of cryptocurrency hedge funds. Regulators intend to strengthen disclosure and monitoring of the industry to mitigate potential risks.

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