Gary Gensler: "Cynthia Lummis' Bill Will Kill Traditional Finance" – Bits Media

SEC Chairman Gary Gensler Concerned, that a new bill to regulate cryptocurrencies in the United States could “undermine” the current rules of the traditional finance market.

Last week, Senators Cynthia Lummis (Cynthia Lummis) and Kirsten Gillibrand (Kirsten Gillibrand) introduced a bill on regulation of digital assets, implying their full inclusion in the US financial system. Main idea, traceable to the bill, is that, what are the rules, applied to gold, shares and securities, should not apply to cryptocurrencies. This bill was supported by many politicians and industry participants.

However, in a recent speech at the Wall Street Journal CFO Summit, SEC Chairman (SEC) Gary Gensler (Gary Gensler) commented on the presented bill, expressing concern, that it could bring chaos to the traditional finance sector. Gensler believes, that cryptocurrencies should be treated the same way, as to traditional banking and financial markets.

“We don’t want to violate the protections, which are used in the capital market in $100 trillion. Digital assets offered to the public, which hopes to make a profit in the future. Here are the characteristics of an investment contract, hence, cryptocurrencies should be regulated according to rules, applicable to securities", He said.

Gensler actively advocates, so that the supervision of cryptocurrencies is carried out by the SEC, not the US Commodity Futures Trading Commission (CFTC), which prefers to classify crypto assets as commodities. Therefore, Gensler’s reaction to the bill was quite expected. Recently Ripple legal counsel Stewart Alderota (Stuart Alderoty) criticized the SEC for, that the department is deliberately delaying the trial with the company, to continue to “destroy” cryptocurrency firms.