SEC Chairman says cryptocurrency falls under security-based swaps rules
July 21, 2021. Summarized by summa-bot.
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Chairman Gary Gensler said whether the platforms are decentralized or centralized they are implicated by the securities law.
The Securities and Exchange Commission, or SEC, may soon issue new rules for the regulation and registration of security-based swaps, including cryptocurrency.
In a speech to the American Bar Association Derivative and Futures Law Committee SEC Chairman Gary Gensler laid out the changes coming to security-based swaps over the next year.
“Thus, I’ve asked staff to consider ways we can continue to increase transparency and reduce risk through our unused authorities, particularly with regard to security-based SEFs and position reporting. ”
Toward the end of his speech Gensler said trade reporting rules will apply to cryptocurrencies if the products are security-based swaps:
A bill was also introduced into congress which is meant to provide greater legal definition to digital assets and reduce the fear of future regulations with regard to blockchain-based tokens.
On Monday a meeting on regulations for stablecoins by the President's Working Group on Financial Markets shared that they expect to release recommendations for such regulations in the coming months.