Senator Warren – Regulate Crypto As Securities!
The goal of Senator Elizabeth Warren’s legislation is to give the SEC authority. According to Jeffrey Sprecher, regulating crypto and placing new requirements on centralized crypto businesses will benefit the industry.
Senator Elizabeth Warren and Intercontinental Exchange Inc. CEO Jeffrey Sprecher believes that most cryptocurrencies would likely be subject to securities regulation in the US.
The recent collapse of FTX has caused a new interest in regulating cryptocurrencies as securities. Removing billions from the market, freezing customer funds, and authorities and officials no longer trusted cryptocurrency.
Sprecher — ICE runs the New York Stock Exchange — said this on December 6 at the Goldman Sachs Group Inc. financial services conference. They asserted with the assurance that digital currency “is going to be regulated and traded like securities.”
Ultimately, he contended, this would lead to significantly improved consumer protections and regulatory monitoring of centralized exchanges and brokers:
Sprecher added that the legal underpinnings for securities already exist and will be implemented more firmly. This new regulation is not necessarily necessary for cryptocurrencies.
Senator Warren, a vocal opponent of cryptocurrencies, desires to enforce discipline. Senator Warren is working on a measure to give the Securities and Exchange Commission, headed by Gary Gensler, the broadest regulatory authority over the cryptocurrency industry.
Warren’s Cryptocurrency Bill
Warren’s cryptocurrency bill is still in its early stages. A December 7 report from online news source Semafor cited two unnamed persons familiar with the situation. It still tries to address various topics, such as taxation, legislation, national security, and climate change.
Warren wants to impose regulatory standards like audited financial accounts and capital requirements akin to banks.
A representative for Warren named Alex Sarabia acknowledged to Semafor that the senator is focusing on the SEC without divulging any specifics about the bill.
Sarabia believes that the SEC and other financial authorities have extensive jurisdiction to take action against crypto fraud and unlawful money laundering. Sarabia is the author of the proposed cryptocurrency legislation.
Regulating Crypto Market
Regulators debate which cryptocurrencies serve as securities or commodities. Due to its genuine decentralization, Bitcoin is the only asset that serves as a commodity.
Exploring Ether as a commodity, there has been much more opposition. Rostin Behnam, the head of the Commodity Futures Trading Commission, recently changed his mind about Ethereum (ETH) being a commodity. He is addressing an invite-only crypto event at Princeton University. He now thinks Bitcoin has that standing. The inventor of MicroStrategy and Bitcoin maximalist Michael Saylor went a step further by effectively calling for the shutdown of any crypto assets that aren’t BTC. Claiming they are committing securities fraud.
Saylor reaffirmed that because centralized companies issued and controlled assets like Ripple, ETH, and Solana, these are all unregistered securities during his appearance on the PDB Podcast on December 6. The vivacious BTC maxi described a situation he would want to see and said, “The ideal thing for the world would be for the SEC to shut down all of it.”
