In contrast to the position of SEC head Gary Gensler, former Commodity Futures Trading Commission (CFTC) chairman Timothy Massad said existing regulatory rules are not enough to regulate the cryptocurrency industry. He also stressed that stakeholders are “unsuccessfully trying to understand the nuances associated with securities laws” and believe it is important to take appropriate legislative measures to protect crypto investors.
“Cryptocurrency regulation in the U.S. is divided into two camps. One side, consisting mostly of industry representatives, argues that the outdated U.S. financial oversight system is ill-suited to deal with evolving new technologies and that its innovative potential deserves a new set of rules. The other side, led by Securities and Exchange Commission Chairman Gary Gensler, believes that U.S. securities law is perfectly adequate,” Massad said.
His proposed solution is to initially avoid a lengthy, unconstructive debate by creating a self-regulatory organization overseen by both the SEC and the CFTC that would work on a common set of legislative tools to protect the interests of investors and issuers of digital assets.
Earlier, a U.S. district court denied the largest cryptocurrency exchange, Binance, a motion for out-of-court motions by SEC attorneys in a lawsuit alleging possible violations of securities law by the company.