Gensler On Board With CFTC Taking Over Bitcoin Oversight

Gensler, who served as the CFTC head for six years, said he is on board with helping Congress grant the commodities regulator more oversight

share

key takeaways

  • In August, senators proposed legislation that would have the CFTC oversee cryptoassets deemed commodities, such as bitcoin and ether
  • The SEC has previously said that ether is a commodity

In a surprising move for the industry, Securities and Exchange Commission Chair Gary Gensler supports allowing the Commodity Futures Trading Commission to oversee bitcoin. 

Regulating bodies need to collaborate to establish clear policies around cryptocurrency technology and investments in order to protect investors, Gensler said during his prepared remarks at the SEC Speaks event Thursday. 

“To the extent the Commodity Futures Trading Commission (CFTC) needs greater authorities with which to oversee and regulate crypto non-security tokens and related intermediaries, I look forward to working with Congress to achieve that goal consistent with maintaining the regulation of crypto security tokens and related intermediaries at the SEC,” Gensler said.

In 2018, William Hinman, the former director of the SEC’s Division of Corporation Finance, called ether a commodity. Gensler has been less clear on his personal stance regarding ether, but said that the only token he would classify as a commodity would be bitcoin, during a June 2022 interview with CNBC

The news comes after a group of bipartisan senators introduced legislation that would make the CFTC in charge of overseeing bitcoin and ether, two cryptocurrencies the senators classify as commodities. Sens. Debbie Stabenow, D-Mich., and John Boozman, R-Ark., authored the bill, dubbed the Digital Commodities Consumer Protection Act, and introduced it in early August. 

Exchanges that enable investors to trade bitcoin and ether must also register with the CFTC, the bill notes. The SEC, which is roughly six times the size of the CFTC, will still control some aspects of governance over the crypto industry, but the bill does not detail exactly what this division of responsibilities will look like. 

Gensler’s support of CFTC involvement in crypto regulation is not the first time the two agencies have seen eye to eye. In August, The SEC proposed an amendment to Form PF, the confidential form via which registered investment advisers are required to disclose specific information about their security holdings. 

The CFTC is considering proposing the same amendments, which would require funds with at least $500 million in assets under management to disclose exposure to cryptoassets. The updates also would mandate large funds to report investment concentration, as well as leverage and related trading financing.

Bitcoin rallied following the remarks, rising 1.3% and recovering from its Wednesday slump below $19,000, alongside major market indexes, in Thursday afternoon trading in New York.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million