SEC Chair Gensler Backs Congress’ Decision Of CFTC Crypto Oversight

Abigal Vee
September 8, 2022
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Byron Donalds

Gary Gensler, Chairperson of the U.S. Securities and Exchange Commission (SEC) says he will back the decision of the Congress to hand over supervision of cryptocurrencies to the Commodity Futures Trading Commission (CFTC). The SEC and CFTC have been at loggerheads, especially with establishing the distinction between securities and commodities when it comes to crypto.

Congress bill to give the CFTC more authority over certain digital assets

The Wall Street Journal revealed the remark on Thursday. According to the WSJ report, Gary Gensler made the comments while speaking at an industry conference Thursday. Gensler mentioned that he is in support of the recent bill from Congress.

The Congress had previously introduced hat would give primary authority over cryptocurrencies to the CFTC. The bill came at a time when the SEC and CFTC were battling over crypto oversight.

According to Gensler, he supports the bill as long as it does not render the SEC powerless in this regard. He specifically mentioned that the CFTC should have authority over “nonsecurity tokens and related intermediaries.” This implies that the SEC should still be allowed to regulate crypto-assets they feel are securities.

Let’s ensure that we don’t inadvertently undermine securities laws underlying $100 trillion capital markets. The securities laws have made our capital markets the envy of the world,

Gensler said.

Before joining the SEC, Gensler served as the 11th Chairman of the CFTC from 2009 to 2014 under President Barack Obama.

Battle of supremacy between Gensler’s SEC and the CFTC might continue

Despite the bill from Congress, the battle of supremacy between the SEC and CFTC could persist. While the bill gives the CFTC authority over digital assets considered commodities, it doesn’t add any extra details. The bill only explicitly highlighted Bitcoin (BTC) and Ethereum (ETH) as commodities which the SEC had already classified so.

The bill, however, does require crypto entities dealing on cryptocurrencies considered commodities to register with the CFTC. The decision seemed to appeal to the majority of entities within the crypto space, as the CFTC is known for its favourable policies on crypto. The SEC, not so much.

Should the SEC persist in its practice of classifying assets as securities against the consensus of the rest of the markets, the battle might continue. The SEC has noted the use of the Howey Test to determine if an asset is a security or not. Notwithstanding, an ex-SEC lawyer John Berry previously previously argued against the efficiency of this.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Abigal .V. is a cryptocurrency writer with over 4-years of writing experience. She focuses on news writing, and is skilled in sourcing hot topics. She’s a fan of cryptocurrencies and NFTs.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.