Latest NewsSEC said Bitcoin and Ethereum will be regulated by the CFTC, not...

SEC said Bitcoin and Ethereum will be regulated by the CFTC, not by SEC

Regulators in the financial markets of America have been arguing over whether bitcoin, Ethereum, and other crypto assets are securities or not. Bitcoin and Ethereum will be regulated by the CFTC said the SEC chairman.

Bitcoin and Ethereum will be regulated by the CFTC, This debate has raged on for years and it has left many market participants completely in the dark. How should they move forward? How should they treat these assets? What’re inbounds and what are out of bounds? Will we finally have some regulatory clarity?

Earlier today in an industry conference sec chairman Gary Gensler came forward and said that he would back a plan by legislators to have bitcoin and Ethereum will be regulated by the CFTC, not the sec. This means that bitcoin and Ethereum would be recognized as commodities, not securities and therefore the CFTC would have jurisdiction, but what this does is it opens up the opportunity for the sec to characterize every other asset more than 20,000 of them as securities and give them oversight over that long tail of crypto assets.

If those other assets are considered securities the sec believes that companies like Coinbase, Gemini, Kraken, and many others would have to register with the sec because they would be trading securities on their platform. Obviously, the market participants do not believe those other assets are securities. They do not believe that they are actually allowing securities to trade on their platform. And so that is where the debate is going to move next.

Bitcoin and Ethereum will be regulated by the CFTC, The big news today is that bitcoin and Ethereum are both now looking to be not securities by the sec. To have the sec chairman come out and say you know I would be okay with the CFTC overseeing the two largest crypto assets that’s a pretty big deal. It remains to be seen whether this will actually occur how the legislation will move forward whether the CFTC will get the amount of money they’re looking for to beef up their oversight of the bitcoin and eat their market. But it is a very big development that the sec chairman now says that he would be okay with this playing out.

And what it does do is it shifts the focus to all those other assets will there be securities or will they not depending on who you ask in the legacy financial market in the regulatory world or if you ask somebody in the crypto world? Everyone has a different opinion but at the end of the day getting regulatory clarity remains one of the biggest hurdles for the industry. Getting regulatory clarity does not mean that regulators will end up implementing the rules that you want simply means that there will be clarity.

Related: There’s No Real Value In Crypto says CNBC’s, Jim Cramer

Clarity is good because it allows entrepreneurs investors innovators and market participants to know what’s allowed and what’s not allowed. It provides an incentive system it also provides a punishment framework so that people aren’t operating thinking about every single day what randomly may end up being their fate. Naturally, regulatory clarity is something that everyone wants but my big guess is when it comes there will be a lot of people who are unhappy.

Related: SEC confirms bitcoin is not a security!

Bitcoin and ether appear to not be security that’s good news for everyone in the market who wanted that outcome. But there are a lot of other assets that still we do not have answers hopefully those answers will come in the short term. Keep paying attention to this area it’s still one of the biggest obstacles for large amounts of capital coming into the industry and there are still a lot of financial institutions who want to play in the space but they’re nervous until more regulatory clarity comes.


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