Expect A Fair Crypto Regulation
Harvey Pitt, a former SEC Chairman says he expects a “fair amount” of crypto regulations from the SEC following the confirmation of Gary Gensler, as the new SEC chairman.
Gensler had a deep understanding and experience in Cryptocurrencies. Before his confirmation last week, he doubles as a crypto professor at the Massachusetts Institute of Technology (MIT). The crypto community is expressing optimism that Gensler’s confirmation will be crypto-friendly.
Coinbase recently got listed on Nasdaq, therefore setting new records and pace for crypto. However, it is attracting several questions. Some said it may bring SEC’s attention to crypto, saying it may henceforth be addressing crypto as securities.
In reaction, through an interview with Bloomberg, Pitt said:
“I expect to see a fair amount of regulation of cryptocurrencies. Right now, I think the rules are unclear.”
“Whether or not certain offerings involve securities or not is unclear. There is a definite likelihood that the SEC will move forward. Gary Gensler is an expert on cryptocurrencies. He has taught about them. He is a market expert,”
He continued. “I would expect to see clear rules of the road evolve under his leadership.”
Pitt, Crypto and SEC
When asked if the SEC should be the regulator of cryptocurrencies or whether it should be the Commodity Futures Trading Commission (CFTC), where Gensler was a former chairman. Pitt said:
There’s a real question about where jurisdictions lie and there may be a need for clarifying legislation. The SEC has already taken the position that bitcoin and ethereum are not securities and therefore there is no regulatory involvement on the SEC’s part.
He explained that companies like Coinbase, “which is effectively making markets in cryptocurrencies,” are subject to SEC regulations, therefore the commission will indirectly influence how these cryptocurrencies are marketed.
In a previous publication, SEC Commissioner Hester Peirce said is “optimistic” that SEC under the Gensler, who has deep knowledge of the crypto markets, can “build a good regulatory framework” for cryptocurrencies.