According to the president of the SEC, Both exchanges and stablecoins serve as a vehicle for practices that can harm users, so the regulator needs greater powers to be able to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. these markets.
The president of the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) Gary Gensler, again highlighted the need for greater vigilance and monitoring of both exchanges that hold users’ cryptocurrencies and services that issue stable coins pegged to the U.S. dollar.
Concerns about exchanges and stablecoins
While Gensler has been adamant about the need for greater regulatory oversight over certain sectors of the crypto space, the top executive at the SEC again reiterated this during a speech today before the National Assembly. University of Pennsylvania Law School where he shared the following anecdote:
“Unlike traditional exchanges, centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. trading platforms often take custody custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss. of their customers’ digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets. Last year, more than $14 billion in value was stolen. I asked the person how to work with the platforms to register them, regulate them and ensure better protection of users’ assets, especially whether it would be appropriate to segregate the custody of cryptoassets.”
In the same way, Gensler took advantage of the space to call attention to the stablecoins, making reference to important exponents of this sector (like USDT y USDC), on which he indicated:
“The three largest stablecoins in the market an area or arena, online or offline, in which commercial dealings are conducted. were created by the trading or lending platforms themselves, and retail investors in the US have no direct right to trade two of the largest stablecoins in the market in terms of market capitalization. There are conflicts of interest and market integrity issues that would benefit from greater oversight.”
More need for control by the SEC
Gensler’s words again echo the need for a greater regulatory approach to this ecosystem of financial products and services, which is why it has not been able to implement measures to protect users in the face of the boom that these assets are gaining every day.
Last year, Gensler warned many projects DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. that its operations could well fall within the jurisdiction of the SEC, as token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. trading could involve the use of assets that could easily be considered securities.
On the other hand, another battle that seems to maintain the SEC is currently the dispute for the first ETF an Exchange-traded Fund, an investment fund that users trade on exchanges and trading platforms. Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. tradable in the U.S. market. To date, the regulatory body has been rejecting all applications that have been submitted for several years, precisely alleging possible market manipulation and high volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. in the price of digital currency, which would serve as a direct reference for the corresponding quotation.
Analysts and enthusiasts claim that the SEC would be waiting for a stronger presence and control over the digital currency currency is a medium of exchange that defines value. ecosystem to accept the first ETF Bitcoin on US territory. However, this could also bring on the other hand greater restrictions to the associated markets, which would mean greater controls and bureaucracy when carrying out commercial operations.
- SEC Officially Denies Bitcoin ETF Application Filed by ARK Invest investing is when you put money in a financial scheme with the intent of making a gain.
- Grayscale CEO contemplates suing SEC if it doesn’t accept his proposal to launch a Bitcoin ETF in the U.S.
- DeFi Projects Could Come Under SEC Oversight, Chairman Gary Gensler Warned
Version by Angel Di Matteo / DiarioBitcoin
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