An official at the United States Financial Stability Oversight Council (FSOC) has recommended that US lawmakers passed the law to determine that Which “governing authority” will be responsible for regulating different parts of the spot crypto market?
At the FSOC’s Oct. 3 meeting, Jonathan Rose, senior economist at the Federal Reserve Bank of Chicago, said the FSOC released a report following President Joe Biden’s executive order on crypto detailing the global stability risks. Potential Finance of Digital Assets and regulatory gaps
The report also identified regulatory gaps. including the spot market for digital assets that are not underlying securities. “Direct federal oversight” indicates lawmakers stepping in to prevent market distortions and potential conflicts of interest.
“While some companies in the crypto asset ecosystem try to circumvent regulations, But other companies have engaged with existing regulatory systems by acquiring trust Charters, or a state-level cryptoasset-specific charter or license,” Rose said. in federal financial oversight in this spot market.”
Rose said cryptocurrencies It may present a financial security risk to the US economy. This includes growing without the relevant regulatory checks and balances. He also mentions crypto companies operating through affiliates. This can be confusing to regulators. And should the company be allowed to provide services through intermediaries, including “broker dealers and futures commission merchants”?
In a statement prepared for a council meeting, Treasury Secretary Janet Yellensaid :
“These reports provide a solid foundation for policymakers as we work to reduce the risks of digital assets and realize the potential benefits. They are also a valuable addition to the public understanding of digital assets.”
The council’s guidance appears to suggest that the Commodity Futures Trading Commission, or CFTC, could be one of the regulators mandated to oversee the spot crypto market, which US lawmakers have.enactTo clarify the role of the Securities and Exchange Commission, or SEC, and CFTC on crypto, many in the area have criticized the two agencies for taking the approach. “Enforcement Controls” on Digital Assets And it appears to be trying to gain control of the market without passing legislation through parliament.
The post FSOC advises lawmakers Decide which regulatory agency Will oversee the spot Crypto market appeared first on Bitcoin Addict.