SEC Chair Mulls Waiving Some Crypto Regulation Rules

Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said that crypto firms may be excluded from certain securities regulations to assist in their regulatory compliance.

He said, "We do have substantial permissions from Congress to exercise our exemptive authorities that we may modify," in an interview on July 14.

According to Bloomberg, the vehemently anti-crypto SEC head stated that such a strategy is employed for stock offerings and asset-backed securities. He did, however, reiterate earlier cautions that many businesses provide unregistered securities and are not in compliance.

Commodity or Security?

Gensler views the majority of crypto assets as securities. They haven't yet been formally designated as such in the US, however. He has fought with the Commodity Futures Trading Commission (CFTC), the second main financial regulator, for control of the asset class.

A commodity is an asset without a business in control, like gold, but a security is similar to a stock that includes a corporation and an investment contract. Although there is some gray area around cryptocurrencies, several of them more closely resemble its characteristics.

There is "a viable road ahead," according to the SEC chair, who has asked cryptocurrency firms to get in touch with the organization. Industry executives have, however, often argued that the SEC has not given them clear instructions on how to register.

A number of cryptocurrency businesses have lately come under fire from the government for allegedly conducting unregistered securities transactions. The most well-known lawsuit, involving the fintech company Ripple and its XRP coin, is nearing its conclusion. A victory for the SEC may create a precedent and prove disastrous for the cryptocurrency market.

Leading financial authorities and lawmakers in America have put off regulating cryptocurrencies.

Federal agencies are urged to "take a leadership role in international engagement and global control of digital assets compatible with democratic norms and U.S. global competitiveness," according to an executive order on digital assets issued by the Biden administration in March.

Since then, there hasn't been much movement, and it's doubtful that any crypto legislation will be passed this year. There is a narrow line between encouraging innovation that may turn the nation into a financial centre and enforcing a harsh crypto crackdown, as some politicians and bankers are asking for.

Market Consolidation in Crypto

As the week comes to a close, cryptocurrency markets have seen a little increase, but they are still range bound. The total market value has increased by 3.2 percent on the day to $970 billion, but the impetus for future gains is restricted.

The price of Bitcoin (BTC) has increased by 1.5 percent today to $20,707, while the price of Ethereum (ETH) has improved by 8.1 percent to trade at $1,209 at the time of this writing.