Continue to promote supervision, SEC Chairman said that new technologies should be included in the public policy framework

December. 17,2021
Continue to promote supervision, SEC Chairman said that new technologies should be included in the public policy framework

Since December, the US SEC has continued to advance the pace of supervision.


On December 13th, SEC Chairman Gary Gensler stated at the Wall Street Journal CEO Council Summit that as long as the project tries to raise funds from the public, no matter what form it is (artificial intelligence, robotic advisors, applications, etc.) , All belong to the broad scope of the SEC's powers and are bound by the securities law. He also emphasized that the main goal of the SEC is to protect the investing public and serve the public.


Gensler also mentioned: "Currently, some projects are trying to register in the Bahamas, Singapore, Seychelles, Malta or any other place. They are also trying to evade international standards and many anti-money laundering laws and tax compliance, including the United States. , But what I want to point out is: Since ancient times, there have been few technologies in history that can last long outside the framework of public policy. Legislative bodies, executive departments, and regulatory agencies will eventually get involved because we serve the public even if they face The same is true for new technologies."


It is worth mentioning that since December, in the past two weeks, the SEC has repeatedly proposed compliance monitoring and review of encryption and new technologies, and proposed to strengthen public protection.


On December 3, the SEC rejected WisdomTree's proposal to launch a spot Bitcoin ETF. The US Securities and Exchange Commission explained that rejection is necessary to protect investors from "fraud" and "manipulation."


Although SBF stated that he was “confused” that the US SEC allowed the launch of Bitcoin futures ETFs but did not allow the launch of spot ETFs. But in response to a question from Pat Toomey, the top Republican of the Senate Banking Committee, SEC Chairman Gary Gensler reiterated his concerns about the lack of regulation of Bitcoin and the possibility of fraud and manipulation. He said that even if non-US regulators approve the spot Bitcoin ETF, the SEC's decision will not be affected.


In addition, Gensler said in a comment sent to Congress: “Today the Bitcoin market itself is basically unregulated. The lack of regulation and supervision leads people to worry about the possibility of fraud and manipulation. Our employees seek to learn from the experience of others, Actions in other jurisdictions are not binding on U.S. regulators, and our employees will continue to follow applicable legal standards and procedures under the Federal Securities Act."


At the same time, Gary Gensler called for more investor protection in the cryptocurrency market. He said, "This asset class is rife with fraud, scams and abuse in some applications. In many cases, investors cannot obtain strict, balanced and complete information about tokens or trading and lending platforms." In addition, investment The Investor Advisory Committee makes recommendations to the US Securities and Exchange Commission on regulatory priorities, including measures to protect the interests of investors and promote investor confidence and the integrity of the securities market.


It is worth mentioning that the SEC's supervision is expanding. Senator Pat Toomey asked Gensler to “determine the specific characteristics that distinguish cryptocurrencies that are securities from cryptocurrencies that are considered commodities.” Gensler said: “It depends on specific facts and circumstances, including any crypto assets. Whether a particular financial instrument is offered or sold as securities.” At the same time, Gary Gensler said that the SEC does not need to specify which encrypted assets are securities and which are not securities, because these laws and court cases establish a wide range of parameters.


The data shows that the SEC's supervision has also been ongoing in the past year. The Block article data pointed out that the US SEC submitted 434 new enforcement actions in fiscal year 2021, an increase of 7% over the previous year. In these new or "independent" lawsuits, 70% involved at least one defendant. These new actions cover the entire securities sector, including the prevention of threats in the cryptocurrency and SPAC sectors.