The US Securities Exchange Commision (SEC) chairman Gary Gensler proposes a ‘one crypto rule book’ to avoid gaps in the regulation of digital assets.
As per reports, the proposal is considered to find a middle-ground and come to an agreement with other regulatory bodies like the Commodity Futures Trading Commission (CFTC).
He told a news outlet, “I’m talking about one rule book on the exchange”.
The SEC chief explained that the regulations must protect investors against fraud, front-running, and manipulation, and also provide transparency over order books.
Gensler described that the proposed rule book will apply to all trading (irrespective of the pair) including a ‘security token versus security token, security token versus commodity token, commodity token versus commodity token.”
He revealed that he is working on a “memorandum of understanding” with his counterparts at the CFTC. The memorandum is to make sure that trading in digital assets is transparent and protected.
He explained that if a commodity token is listed on a platform which is supervised by a securities regulator, the SEC would “send that information over to the CFTC”.
Gensler commented, “By getting that market integrity envelope, one rule book on an exchange will really help the public. If this industry is going to take any path forward, it will build some better trust in these markets.”
Also read: SEC Commissioner Hester Peirce Opposes Crypto Bailouts
