SEC Chair Gensler: Existing rules regulate crypto, legislation unnecessary

Quick Take

  • Securities and Exchange Commission Chair Gary Gensler said additional legislation is unnecessary for crypto, but should Congress act, it’s important that lawmakers not undermine existing laws.  
  • Gensler also declined to talk about any actions his agency may take against crypto exchange Binance, which was sued by a separate regulator on Monday. 

The Securities and Exchange Commission takes the lead in defining what a security is, not necessarily legislation, the regulator's Chair Gary Gensler said. 

After a House Appropriations Committee hearing on Wednesday, Gensler told reporters that existing securities laws "cover most of the activity that's happening in the crypto markets." 

“If Congress were to act, though I don’t think we need these authorities, not to undermine inadvertently through definitions of what’s in or out, or in essence allowing for conflicts that we don’t allow,” Gensler said. 

"I think there is one agency — the Securities and Exchange Commission, overseen by two committees — the House Financial Services and Senate Banking, and the courts that define what a security is and not individual crypto exchanges selecting that," Gensler later said. 

Lawmakers have introduced legislation over the years to regulate crypto. Sens. Kirsten Gillibrand, D-N.Y., and Cynthia Lummis, R-Wyo., have plans to reintroduce legislation next month that would, in part, assert that the Commodity Futures Trading Commission has control over digital asset commodities, such as bitcoin.  

“I think many of the legislative vehicles would, if adopted, would undermine the securities remit,” Gensler added. 

Silence on Binance

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