US crypto bill could undermine market protections: SEC, Gensler

The recently proposed U.S. cryptocurrency bill could undermine existing regulatory framework for broader capital markets, Securities and Exchange Commission (SEC) Chairman Gary Gensler said on Tuesday.

Fast facts

• Speaking at the Wall Street Journal’s CFO Network Summit, Gensler said many crypto companies are issuing tokens that should be classified as securities while services such as offering yield for staking are best overseen by the SEC.
• “We don’t want to undermine the protections we have in a US$100 trillion capital market,” he said. “Like behaviors should have like treatment.”
• The bill, known as the Responsible Financial Innovation Act, classifies decentralized cryptocurrencies as commodities, putting them under the remit of the Commodity Futures Trading Commission (CFTC).
• Gensler said he is skeptical that tokens listed on cryptocurrency exchanges are not securities, adding the SEC is not after extending its jurisdiction.