United States Securities and Exchange Commission Chair Gary Gensler, in an interview, said that the agency might consider exempting crypto companies from certain securities laws.
The United States Securities and Exchange Commission is mulling over whether to waive certain rules in its bid to regulate the crypto market. SEC Chair Gary Gensler said as much during an interview with Yahoo! Finance on July 15.
Specifically, the SEC is considering exempting crypto companies from certain securities laws.
The hope is that the exemption will persuade more crypto companies to come into compliance with regulations in general. At the same time, Gensler stressed that there were several crypto companies that were operating outside compliance standards, though he did not highlight any specific names.
However, Gensler is by no means taking an unfriendly stance. Rather, he hopes to foster discussion and engage with crypto companies. The SEC Chair said,
“There’s a potential path forward. I’ve said to the industry, to the lending platforms, to the trading platforms: ‘Come in, talk to us.’”
At any rate, the SEC is thinking of offering the crypto market a more customized set of laws, which could be to the benefit of the industry. By and large, the crypto market has also shown a willingness to work within the law and follow compliance standards.
In any case, the willingness to comply may soon not be a choice. U.S. authorities, as well as those from around the world, are taking a more proactive approach to clamp down on the market.
Crypto regulation in US may happen this year
Crypto regulation has become a particularly important topic of discussion among U.S. authorities, as the recent fall of several crypto companies, including Three Arrows Capital and Celsius Network, has highlighted the need for laws. Lawmakers around the world feel the same way, fearing that the crypto market is now large enough to have knock-on effects that might affect the economy at large.
To that end, the U.S. is scrambling to establish laws for the asset class. There are several signs that indicate that this will happen sooner rather than later, with stablecoins being one of the highest priorities on the agenda.
The U.S. Treasury recently asked for public commentary on the risks and benefits of the crypto market. The agency will soon submit its report to President Biden and his administration for further review. The increased pace of action indicated that a wide-ranging crypto regulation policy could happen before the end of the year.
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