SEC Chair Gary Gensler unveiled a joint crypto-regulatory plan through a speech at the Penlow Capital Markets Association’s annual meeting on April 4. The speech emphasized the importance of regulatory agencies in ensuring financial stability, investor protection, fair, orderly and efferent markets.
Gensler also pointed out the need for technology neutrality in regulation, stating that cryptocurrencies should not be treated differently due to the different technologies.
He also went on to list the crypto-related areas covered by the SEC’s regulatory strategy. He revealed that he had asked the staff to develop a strategy to regulate the platform. The SEC has called for a combination of securities and non-securities trading regulatory strategies, keeping in mind cooperation with the CFTC.
“I worked with the Commodity Futures Trading Commission (CFTC) on how to use their respective authorities to jointly address platforms that may trade both crypto-based security tokens and some commodity tokens. I asked the staff to cooperate. “
Now, the best case study of cryptographic regulation could be the SEC vs. Ripple case. After Gensler’s recent comments, crypto traders wondered if the price of XRP would fluctuate.
Will Cryptographic Collaboration Affect XRP?
The announcement has received various reactions to its potential impact on the cryptocurrency market.Cryptographic influencer @ CryptoWhale Tweets We received an interesting view of the SEC-CFTC’s regulatory partnership, especially with regard to its potential impact on XRP.
Just In: The SEC and the Commodity Futures Trading Commission (CFTC) #cryptocurrency market.
— CryptoWhale (@CryptoWhale) April 5, 2022
One of the respondents Said The partnership may be part of the SEC’s plans to terminate the XRP proceedings. Another Twitter user dismissed the claim that CFTC considers XRP to be a commodity.
One of the implications of the SEC and CFTC cooperation is that we need to agree on the Ripple proceedings. If the SEC is on the CFTC side of the XRP, it probably means the end of the litigation.
But what is the conclusion
Now, Gensler clarified the regulatory approach to the crypto market by focusing on three key focal areas. They include cryptocurrency exchanges, crypto storage, and platforms that list crypto tokens and crypto commodity tokens.
The focus of regulation seems to move the target away from digital currencies. However, planning to limit crypto access points can pave the way for rigorous measures and monitoring of crypto-related transactions.