In DC amid continued jockeying over who will be the de facto crypto regulator between the Securities and Exchange Commission (SEC) and the Commodity and Futures Trading Commission (CFTC), SEC Chairman Gary Gensler has reaffirmed his position that crypto exchanges must register with him organization.
This is a position that previous Gensler chairmen have taken, often citing potential conflicts of interest due to the many roles played by crypto exchanges, and their structural similarity to existing securities exchanges.
The SEC has too repeatedly quoted lack of “supervision sharing agreement with the regulated market of significant size” at the point of Bitcoin ETF rejection.
Crypto companies and entrepreneurs like Sam Bankman-Fried and FTX have it given a sign desire to have the CFTC as the primary crypto regulator instead of the SEC, and has been joined by lawmakers who have introduced a bill that would make that explicitly. However, SBF acknowledged that the SEC will take jurisdiction over at least some tokens.
It was even referenced in Gensler’s speech when he said, “until the Commodity Futures Trading Commission (CFTC) needs it. greater authority to monitor and regulate crypto non-security tokens and related intermediariesI look forward to working with Congress to achieve these goals consistently with maintaining the regulation of crypto security tokens and related intermediaries at the SEC,” (our emphasis).
Chairman Gensler went on to explain that the SEC intends to pursue oversight of tokens that are considered securities.