SEC, CFTC Chair Keep an Eye on Cryptocurrency Review

nRunaway Comment: The United States Securities and Futures Commission, chairman of the Commission jointly wrote an article that will increase the censorship of cryptocurrency industry and resource investment, crack down on illegal activities in the industry. Moreover, he pointed out that the words and deeds of the supervisory body were unilaterally and superficially understood by the outside world, ignoring the protection of investors. The current use of cryptocurrencies is completely different from the main purpose of publicity, hoping to effectively regulate from the aspects of policies and regulations. Relevant agencies that have already registered will be further reviewed to ensure their efficiency and effectiveness.n
nTranslation: Annie_Xun
U.S. financial regulators have further promised to closely examine domestic encrypted currency transactions.n
The Wall Street Journal column mentions that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have indicated that they will invest substantial resources in industry monitoring. And continue working with other government agencies to combat fraud in this market.n
The article was co-authored by Jay Clayton and J. Christopher Giancarlo, the SEC and CFTC chair respectively. This is the latest time a financial regulator has publicly said it will steer the industry.n
In July last year, the SEC released an important statement that the agency may consider registering products issued by the ICO as securities and must register.n
However, the Wall Street Journal reported that Clayton and Giancarlo warned those trying to evade government guidance:n
n”The SEC has put a lot of resources into the ICO market, and market participants, including lawyers, exchanges and financial services companies, must understand that much of the emphasis on formality over substance has made us very uneasy. Some form-based arguments deprive investors of compulsion protection”.n
nAnd cryptocurrencies are now “advertised, bought, and traded as investment assets,” and the hype of utility as an efficient exchange medium is “a distant secondary characteristic.”n
Their assessment is in line with the recent move of the SEC to suspend ICO activities and prosecute project organizers. Last week the CFTC, which encrypted currency as a commodity, also sued for cryptocurrency suspicion of fraud.n
In addition, Clayton and Giancarlo voiced support for the relevant policies in the text to review the existing legal provisions to ensure that they can effectively monitor cryptocurrency-related activities.n
n”Many Internet-based cryptocurrencies are registered as payment services and are not regulated directly by the SEC or the CFTC.We will support the policy measures to re-examine these frameworks to ensure that they are efficient and effective in the digital age.”n

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