SEC Urges Congress to Pass Cryptocurrency Legislation to Protect Investors – Regulation Bitcoin News

The U.S. Securities and Exchange Commission (SEC) has urged Congress to pass cryptocurrency legislation to protect investors, the new SEC chairman has revealed. The securities regulator is also working with the Commodity Futures Trading Commission (CFTC) and the U.S. Treasury Department to combat criminal activity facilitated by cryptocurrencies, the chairman noted.

SEC Working With CFTC, Treasury on Crypto Regulation, Urges Congress to Pass Legislation

The new chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has asked Congress to take action regarding cryptocurrency legislation, he told the House Appropriations subcommittee on Wednesday.

Gensler explained to the subcommittee that there were “gaps” in the regulation of cryptocurrencies, like bitcoin and ether. Noting that there are “thousands” of cryptocurrencies in existence right now and many of them are operating as unregistered securities, he emphasized:

We’ve only been able to bring 75 actions and there are others currently that are not compliant.

Gensler stated that the most pressing issue in the regulation of the crypto space is the lack of regulatory oversight of cryptocurrency exchanges. He said that he would like to work with Congress “to bring investor protection to the platforms, where these sometimes-commodities, sometimes-securities are trading on the platform.”

The chairman proceeded to give an example of front running, where a crypto exchange could share order information, allowing an investor to trade ahead of a crypto transaction, which makes purchases more expensive for other investors. He affirmed: “Without a cop with a beat and some rules of the road, then market participants can front run your orders.”

In contrast, the chairman said that the SEC is working to protect against fraud and manipulation in traditional stock exchanges but the same protection is not in place for crypto exchanges. He emphasized that the…

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