Fun

SEC Chairman Outlines Regulation of Crypto Assets Relating to Security-Based Swaps

News Feed - 2021-07-23 12:07:47

SEC Chairman Outlines Regulation of Crypto Assets Relating to Security-Based Swaps


The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has clarified how cryptocurrencies falling under security-based swaps are regulated. He affirmed that platforms operating in the centralized or decentralized finance space are implicated by the securities laws. SEC’s Regulatory Approach to Cryptocurrency


SEC Chairman Gary Gensler talked about cryptocurrency regulation Wednesday before the American Bar Association Derivatives and Futures Law Committee Virtual Mid-Year Program.


After discussing various topics, including security-based swaps, credit default swaps, and registration of their dealers and participants, he proceeded to talk about cryptocurrency.


“I’d briefly like to discuss the intersection of security-based swaps and financial technology, including with respect to crypto assets,” he said. “There are initiatives by a number of platforms to offer crypto tokens or other products that are priced off of the value of securities and operate like derivatives.” The SEC chairman emphasized: Make no mistake: It doesn’t matter whether it’s a stock token, a stable value token backed by securities, or any other virtual product that provides synthetic exposure to underlying securities. These platforms — whether in the decentralized or centralized finance space — are implicated by the securities laws and must work within our securities regime.


He continued: “If these products are security-based swaps, the other rules I’ve mentioned earlier, such as the trade reporting rules, will apply to them. Then, any offer or sale to retail participants must be registered under the Securities Act of 1933 and effected on a national securities exchange.”


Gensler further noted: We’ve brought some cases involving retail offerings of security-based swaps; unfortunately, there may be more. We will continue to use all of the tools in our enforcement toolkit to ensure that investors are protected in cases like these.


The SEC has taken about 75 enforcement actions against individuals and companies in the crypto industry so far. However, Gensler said more companies are in violation of securities laws.


Gensler previously emphasized the need to regulate cryptocurrency exchanges. He even urged Congress to step in and pass legislation to protect investors. However, the SEC left bitcoin and cryptocurrency off its regulatory agenda for 2021.


Early this month, U.S. Senator Elizabeth Warren asked the SEC to use its full authority to address the risks associated with crypto assets. She gave Gensler until July 28 to provide answers on the SEC’s authority to protect consumers investing and trading in cryptocurrencies, and determine what future congressional action was needed.


What do you think about Gary Gensler’s comments? Let us know in the comments section below. South Korean Regulators Warn Dozens of Foreign Exchanges to Comply With New Rules REGULATION | 8 hours ago EU Proposes Law to "Ensure Full Traceability" of Crypto Transfers, Ban Anonymous Wallets REGULATION | 2 days ago Tags in this story Gary Gensler, gensler crypto, gensler cryptocurrency regulation, SEC, sec crypto regulation


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Aurus Disrupts the Gold Industry – Today Its Ecosystem Lists at a Value of $75m
Aurus Disrupts the Gold Industry – Today Its Ecosystem Lists at a Value of $75mWith the US dollar facing headwinds, notably the coronavirus pandemic and an upcoming presidential e
UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse
UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse United Arab Emirates (UAE) airliner, Emirates, has announced plans to launch non-fungible tokens (NFT) and exp
Meta’s prototype ‘full holographic’ glasses could be a game changer for Web3
Tristan Greene6 hours agoMeta’s prototype ‘full holographic’ glasses could be a game changer for Web3The new holographic display could give NFTs the Pokemon Go treatment.2341 Total views15 Total sharesListen to art
Ethereum Looks Strong Despite Volatility – $10,000 Price Target Gains Momentum
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Zhiyuan Sun4 hours agoSeda co-founders discuss intersection of oracles and multichainOracles enable value, but they are also susceptible to value manipulation; co-founders of Cosmos-based Seda discuss their benefits and
$106K Bitcoin A ‘Safer’ Buy Than $25K—XRP Lawyer Drops Bombshell
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
The USA can (and should) dedicate more energy to Bitcoin mining
Christopher Koopman3 hours agoThe USA can (and should) dedicate more energy to Bitcoin miningDonald Trump is right: The United States could easily ramp up the amount of energy it expends on Bitcoin mining.472 Total views
Tristan Greene6 hours agoLocal Web3 community launches ‘Crypto Aid Israel’ to help displaced citizensThe charity campaign aims to raise funds for humanitarian aid to help Israelis affected by the recent conflict.1957
Turner Wright4 hours agoFormer Celsius exec pleads guilty to criminal chargesRoni Cohen-Pavon, Celsius’ former chief revenue officer, has pleaded guilty to four criminal charges and will be free on bail until a Dec. 11
William Suberg9 hours agoAI has potential to send Bitcoin price over $750K — Arthur HayesThe coming years will be explosive for AI, and even more so for Bitcoin, says the former BitMEX CEO.10139 Total views11 Total sha
Tom Brady, Gisele Bündchen, Kevin O’Leary, and 9 Other Celebrities Named in FTX-Related Class-Action Lawsuit
Tom Brady, Gisele Bündchen, Kevin O"Leary, and 9 Other Celebrities Named in FTX-Related Class-Action Lawsuit Former FTX CEO Sam Bankman-Fried (SBF) and a number of celebrities inc
Union Bank of Philippines to Offer Crypto Trading and Custodial Services
Union Bank of Philippines to Offer Crypto Trading and Custodial Services One of the largest banks in the Philippines, Unionbank, is reportedly launching cryptocurrency trading and