Global: SEC Chair Gary Gensler Argues US Commodity Regulator Should Have More Authority Over Stablecoins

U.S. Securities and Exchange Commission (SEC) chair Gary Gensler is reportedly saying that the Commodity Futures Trading Commission (CFTC) should have more regulatory authority over stablecoins.

Gensler says in a recent Georgetown conference that stablecoins have many similarities to money market funds and should be regulated as such.

“I think the CFTC could have greater authorities. They currently do not have direct regulatory authorities over the underlying non-security tokens.” 

The SEC chair urged Congress to give the CFTC the necessary power to just that.

Gensler testified before national lawmakers, arguing that a large portion of the approximately 10,000 cryptocurrency tokens are securities and that securities laws must apply to their transactions. Gensler said he wants these cryptocurrency firms to register their tokens with the SEC.

Shortly after Gensler’s testimony, CFTC chair Rostin Behnam told a Senate Committee that the CFTC’s oversight in the financial digital space is a logical extension of what they already do.

“As I have publicly stated several times, including to this committee, and as has been recognized by federal courts, many digital assets constitute commodities. As recognized by the DCCPA (Digital Commodities Consumer Protection Act), the CFTC’s expertise and experience make it the right regulator for the digital asset commodity market.”