SEC Chairman Suggests Openness to Crypto Bills That Don't "Inadvertently Undermine Securities Laws"

"I look forward to working with crypto projects and intermediaries seeking to comply with laws," said Gary Gensler.

US Securities and Exchange Commission Chairman Gary Gensler backs legislation that gives the Commodity Futures Trading Commission greater authority over crypto, apparently if it doesn't step on the SEC's toes .

In remarks written for a Thursday program hosted by the Practicing Law Institute, Gensler encouraged intermediaries in the crypto space as well as crypto security token projects and potentially stablecoins to register with the SEC, reiterating his "come talk to us" approach. According to the SEC Chairman, the "vast majority" of the approximately 10,000 tokens in the cryptocurrency market were securities subject to the agency's regulatory jurisdiction and likely needed legislation to provide protection. investors.

"I look forward to working with crypto projects and intermediaries seeking to comply with laws," Gensler said. "I also look forward to working with Congress on various legislative initiatives while maintaining the strong powers we currently have. Let's make sure we don't inadvertently undermine the securities laws underlying capital markets $100 trillion."

Gensler suggested that crypto intermediaries might have to register each of their functions with the SEC and CFTC, depending on whether the services were offered as an exchange, broker, or custodian:

"The mixing of different functions within crypto intermediaries creates inherent conflicts of interest and risks for investors [...] Disaggregating their functions into separate legal entities [could] mitigate conflicts of interest and enhance investor protection."

Related: Gensler Calls for "One Rule Book" in Negotiations with CFTC Over Crypto Regulation

Members of Congress are currently pursuing different legislative paths to regulate the crypto industry. In August, senior members of the Senate Agriculture Committee