SEC Chairman Highlights Importance of Being Ready for Crypto

Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), recently highlighted the importance of requiring federal regulators to be ready to protect customers against bad actors in the cryptocurrency industry.

The statement was done during the 2021 Financial Industry Regulatory Authority (FINRA) annual conference, one of the premier events regulators and other financial service professionals to discuss matters of compliance and regulation concerning the financial industry.

Gensler referred to the increasing popularity of the Fintech and Cryptocurrencies industry by stating:

“As we continue to stay abreast of those developments, the SEC and FINRAshould be ready to bring cases involving issues such as crypto, cyber, and fintech. We need to do whatever we can to ensure that bad actors aren’t playing with working families’ savings and that the rules are enforced aggressively and consistently.”

The recently appointed Chairman was already in charge of the regulator when it issued a warning on May 11 for mutual funds trading Bitcoin futures about the high volatility and increased monitoring by the institution over the industry.

Experts have considered the statement as a sign of the increasing importance that president Biden’s administration is giving to protecting consumers of the uncertainty the crypto industry brings to the table.

New IRS Tax Plan Will Further Affect Crypto Investors

A new report released by the United States Treasury Department on May 20th outlines the new administration’s plans to require businesses to report all cryptocurrency transfers of more than $10k to the Internal Revenue Service (IRS).

The report stated that:

“Within the context of the new financial account reporting regime, cryptocurrencies and crypto asset exchange accounts and payment service accounts that accept cryptocurrencies would be covered. Further, as with cash transactions, businesses that receive crypto assets with a fair market value of more than $10,000…

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