According to the securities regulator, Lawmakers should prioritize exchanging, lending, as well as decentralized finance.
Gary Gensler, which is the Chairman of the Securities and Exchange Commission, wants his organization to have more resources and capacity to impose restrictions on the cryptocurrency community.
In a statement to State Sen. Elizabeth Warren, he stated that Lawmakers should give the organization more supervision and legislative powers to oversee “exchanges, products, and platforms” in the United States cryptocurrency market.
“In my opinion, the legislative focus must be on crypto exchanges, lending, and also on DeFi networks.
Greater legislative ability to create regulations for and apply safeguards to cryptocurrencies transactions and lending would help policymakers, he added.
Gensler’s message, which was made public on Wednesday, is a reply to Warren’s official statement last month, in which the Massachusetts State Democrat questioned what jurisdiction the Commission presently has in overseeing cryptocurrency exchanges and if there are any loopholes.
Warren cited the present way bitcoin exchanges handle client cash, claiming that “the absence of regulation to offer fundamental consumer safeguards is unsupportable.”
In his message, Gensler stated, “At the moment, I think traders that use these services are not sufficiently protected.”
Tokens with a constant value
In his answer, Gensler reaffirmed prior comments concerning stablecoins.
Stablecoin customers could be attempting – if not overtly capable – to dodge anti monetary laundering, taxation, penalties, and other restrictions, according to the SEC chairman, who formerly led the Commodity Futures Trading Commission back until 2014.
“There is a current stablecoin worldwide market 113 billion dollars, comprising of 4 big stablecoins – which have also been operating for 7 years,” he added. “Such stablecoins are integrated into cryptocurrency trade and lending systems.” Stablecoins are commonly used in cryptocurrency back and forth trading.
During July, approximately 3 quarters of all cryptocurrency trade on all venues took place among a stablecoin and also another token.”
Gensler has already cautioned that even if stablecoins are backed by assets, they may be subject to securities laws.
Warren stated in a statement on Wednesday that cryptocurrency is the “wild west of our monetary sector,” and that the market needs stricter controls to preserve the monetary system and individuals as well.
“I’m happy SEC Chairman Gensler believes and has instructed the SEC using its complete capacity to tackle this issue, as well as where more regulatory control may need to be provided by Congress,” Warren added. “I plan to keep working with the SEC and other government authorities upon it, and I intend to use legislation to fix regulatory loopholes.”
It is unknown if Warren plans to propose new requirements to meet Gensler’s worries, or if other government departments or private firms would be consulted on the matter.