SEC’s Chairman: The CFTC Should Regulate the Stablecoins Industry

Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said in late 2021 transactions with digital currencies should be regulated by his agency.

In his opinion, such transactions could be controlled by securities laws. Last week, Gensler argued digital assets such as stablecoins, which have a combined market cap of more than $150 billion, should be regulated by the Commodity Futures Trading Commission (CFTC).

Such instruments are similar to stock markets. Particular attention should be paid to controlling issuers of stablecoins. The regulation of such companies will minimize the risks of fraud and price manipulation.

Gensler has said:

“I believe that the CFTC should have more authority. Right now, the CFTC does not have the ability to directly control tokens that are not linked to securities.”