- SEC Chair Gary Gensler supports CFTC in regulating BTC and ETH.
- Currently, CFTC has the right to oversee crypto swaps and futures derivatives.
- Crypto lobbyists have asked lawmakers to grant key regulatory roles to CFTC.
Following the competition between the SEC and Commodity Futures Trading Commission (CFTC), Gary Gensler, Chairman of SEC remarked that he would support CFTC in overseeing certain cryptocurrencies. This includes cryptos such as Bitcoin and Ethereum.
Today, speaking at a conference, Gensler said that he is ready to work with Congress to give CFTC the power to “oversee and regulate” non-security tokens and the related intermediaries.
Furthermore, Gensler added:
<blockquote> “Let’s ensure that we don’t inadvertently undermine securities laws.” We’ve got a $100 trillion capital market. Crypto is less than $1 trillion worldwide. But we don’t want that to somehow undermine what we do elsewhere.” </blockquote>
Reportedly, CFTC has been looking to maintain the crypto regulator position, especially following a bipartisan bill by the Senate Agriculture Committee for BTC and ETH spot trading, in July. As of now, CFTC has the right to regulate crypto derivatives such as swaps and futures.
Essentially, many crypto lobbyists have asked lawmakers to give a primary role to CFTC for the crypto regulatory authority. They opined that SEC’s rule is fit for traditional stock markets and bonds, but not for cryptocurrencies.
Earlier in February 2022, Rostin Behnam, chairman of the CFTC asked Congress for a law that confirms jurisdiction to regulate cash markets for some cryptocurrencies. The CFTC also asked to provide funding to have additional control over cryptos.
According to the SEC-CFTC agreement, CFTC should continue to “coordinate with foreign regulatory authorities, to participate in international regulatory organizations and forums, and to provide technical assistance to foreign government authorities” as part of its international activities.