The United States SEC and CFTC are Looking to Educate the Masses About Digital Assets and Blockchain
In a testimony given before the US Congress recently, the chairmen of US SEC (Securities and Exchange Commission) and the CTFC (Commodities Futures Trading Commission (CFTC) stated that the goals of their respective agencies was to help educate the masses about various digital assets (such as alt-tokens, stablecoins, etc).
Additionally, both Jay Clayton (Chairman of SEC) and J. Christopher Giancarlo (Chairman of the CTFC) stated their their respective regulatory bodies were looking to devise novel ways in which to help investors learn about altcoins as well their underlying framework ‘blockchain’ in the easiest manner possible.
More on the Matter
As things stand, the SECs Compliance Inspections and Examinations division has deemed crypto assets to be ‘high-risk investment vehicles’. In addition to this, it should also be remembered that quite recently Clayton sent out a circular requesting for four new personnel to be added to the SEC’s Division of Trading and Markets — so as to help increase the expertise of the regulatory body in relation to the global digital asset market.
During the CFTCs recent budget hearing, Giancarlo was quoted as saying:
“Technological change, disintermediation of traditional actors and business models, and the need for technological literacy and big data capability are our biggest challenges right now”.
He then went on to say that in order for the CTFC to work at its optimal capacity, the regulatory body needs permission to carry out:
“independent market data analysis across different data sources — including decentralized blockchain ecosystems and networks”.
In closing out this article, it should be made clear that there currently exists no uniform federal classification for cryptocurrencies. As a result of this, both the SEC and CFTC have varying regulatory definitions regarding alt-assets — even though both agencies wield a lot of legal power.
Last but not least, U.S. regulators recently reintroduced the Token Taxonomy Act, in order to exclude digital assets from securities laws and thereby provide them with a “uniform framework” to work with.
Read the Token Taxonomy Act here.