• The US Securities and Exchange Commission (SEC) is regulating the trillion-dollar crypto market with recent lawsuits against major exchanges like Binance and Coinbase.
• SEC Chair Gary Gensler has been around finance for four decades and he claims to have never seen such noncompliance and hype in this field.
• The House Committee on Agriculture recently held a meeting, proposing a bill that would consider cryptos as commodities, which could potentially limit the SEC’s jurisdiction over the sector.
SEC’s Crypto Witchhunt
The US Securities and Exchange Commission (SEC) is enforcing its jurisdiction over the trillion-dollar crypto market by filing lawsuits against large crypto exchanges such as Binance and Coinbase. SEC Chair Gary Gensler commented on how there is an abundance of “noncompliance and hype masquerading as real” in this industry.
The House Committee on Agriculture Meeting
The House Committee on Agriculture recently had a meeting titled “The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets”, where Chairman Rostin Behnam proposed a draft bill that would consider cryptos as commodities instead of securities. This could potentially limit the SEC’s authority over this sector if Congress passes it into law.
Enforcement Actions Against Crypto Firms
Since Gensler took office in 2021, he has taken enforcement actions against numerous crypto firms such as Ripple, Tron, Gemini, Genesys etc. According to China-based reporter Colin Wu, the SEC brought 760 enforcement actions in 2022 with ordered payments totaling $6.439 billion – both being the highest records in SEC history.
Could The CFTC Take Over?
If Congress passes the proposed bill from the House Committe on Agriculture meeting, then it could potentially strip away much of the power from the SEC to regulate this sector due to its classification of cryptos as commodities instead of securities. This may open up an opportunity for other government agencies like CFTC to have more control over cryptocurrencies instead.
Overall, although the SEC has been actively trying to enforce its jurisdiction over cryptocurrencies through filing lawsuits against exchanges and firms alike, they may soon be limited due to their determination to consider altcoins securities rather than currencies or commodities – which may open up more opportunities for other government agencies like CFTC to take action instead if Congress passes certain bills regarding these digital assets’ classifications into law..