SEC Chair Gary Gensler Backs Giving CFTC Bitcoin Oversight
At an industry conference today, Securities and Exchange Commission (SEC) chief Gary Gensler said that he supports handing the Commodity Futures Trading Commission (CFTC) the power to “oversee and regulate crypto nonsecurity tokens and related intermediaries.” Gensler stressed that should Congress give the CFTC prime oversight over crypto, his own federal agency shouldn’t be overlooked. “Let’s ensure that we don’t inadvertently undermine securities laws underlying $100 trillion capital markets,” he said. “The securities laws have made our capital markets the envy of the world.” There has been a flurry of proposals, both from the crypto industry itself and from Washington, to delegate oversight of the crypto industry to the CFTC, which presently only has the power to regulate derivatives. Gensler has previously said that Bitcoin is a commodity, not a security, but many believe he wants to find a way to bring Ethereum, the world’s second-largest cryptocurrency by market capitalization, under SEC control.