SEC Chair Gensler supports regulations that may impact bitcoin exchanges
During a recent conference targeted on the Treasury bond market, Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), has reaffirmed the agency’s intentions to redefine the term “exchange”. Aimed at improving market efficiency, this suggested modification is generating questions among the bitcoin community.
Gensler spoke at the conference on many steps meant to bolster the Treasury market, including a redefining of a “dealer.” This update tries to define the responsibilities of several market players, including main trading companies using algorithmic trading techniques. Originally suggested in 2022, these measures were met with from pro-crypto legislators concerned about their possible detrimental effects on digital asset trading.
The revised meaning of “exchange” and other trading platforms now occupy more urgent attention. Under consideration since 2022, this idea would mandate registration requirements for platforms serving as market makers for government securities. The proposal’s language implies that it may also apply to other trading platforms, therefore posing constitutional concerns. In a later update, Gensler outlined the insertion of a clause especially aimed at distributed finance (DeFi), therefore closing current legal loopholes.
Gensler later spoke to the media on the SEC’s approach to crypto regulation, stressing that present regulations sufficiently control the sector even if he omitted mentioning DeFi or bitcoin in his statement. Emphasizing the need of compliance and investor safeguards, he underlined how exchanges had to follow securities rules.
The continuous regulatory projects of the SEC seek to bring clarification within growing market scrutiny of cryptocurrencies. Stakeholders in the digital asset market are intently observing as these ideas develop as they know the result might greatly affect the direction of crypto trading.
