SEC Officials Aim to Define Regulatory Framework for Tokenized Securities
At ETHDenver on Wednesday, Paul Atkins and Hester Peirce discussed the SEC's regulatory roadmap and how it will address volatility in cryptocurrency markets.
During remarks delivered on Wednesday, Paul Atkins, who serves as chair of the US Securities and Exchange Commission (SEC), alongside Hester Peirce, the head of the agency's crypto task force, indicated their backing for initiatives designed to clarify the way "tokenized securities interact with existing regulation," thereby improving conditions for industry developers.
During their presentation to participants at the ETHDenver conference focused on the trajectory of regulatory oversight, both Atkins and Peirce tackled questions surrounding the volatility evident in numerous cryptocurrency valuations and outlined the agency's strategy for advancing digital asset regulation while a possible market structure bill makes its way through Congress.
When addressing the issue of "falling crypto prices of late," which appears to reference the decline of Bitcoin (BTC) and Ether (ETH) prices by more than 28% and 40%, respectively, over the preceding 30 days, Atkins stated:
"As regulators, the best thing we can do is to ensure that the rules governing the asset classes we regulate enable people to have the information they need to express their market sentiments through decisions about whether to buy, sell, or hold the assets at issue."
While neither of the two commissioners explicitly addressed the ongoing efforts to advance market structure legislation through Congress, Peirce did acknowledge that the SEC had "provided technical assistance" regarding this matter. Legislation currently advancing in the US Senate, which was known as the CLARITY Act upon its passage through the House of Representatives in July, has the potential to transfer a significant portion of the SEC's regulatory jurisdiction over digital assets to the Commodity Futures Trading Commission (CFTC).
Taking place in Colorado this week, ETHDenver represents one of the most significant cryptocurrency gatherings in the United States, drawing together industry leaders and developers from across the sector.
CFTC is still understaffed, despite Senate-confirmed chair
Following his confirmation as both a commissioner and chair of the CFTC in December, Michael Selig continues to serve as the only leader at an agency designed to operate with five commission members. While the US Senate evaluates provisions contained within the market structure bill, certain lawmakers have advocated for including language that would mandate the confirmation of at least four commissioners before the legislation could become effective.