Amid the increasing demand for clarity around crypto regulations, the US SEC Chair is allegedly trying to push some tokens under the “Security” category. Experts have suggested that the commission is waiting for some lawsuits to end so that they can strike on cryptos.
SEC Chair to close down on crypto regulations?
Meanwhile, the SEC Chair recently mentioned that it looking forward to working with Congress in order to pass some power to CFTC. It added that the SEC’s sister regulatory body might regulate some digital assets in the future.
However, John Deaton, Amicus Curiae in the SEC Vs Ripple Lawsuit has stated that the SEC Chair Gary Gensler is just waiting for the validation to take further steps.
He mentioned that if the commission wins the summary Judgement in LBRY and Ripple Lawsuits then it can justify that they can regulate the tokens. This will confirm that most tokens are securities. While SEC chair doesn’t have much to lose by not settling these cases.
XRP Lawyer explains its effects
Deaton highlighted that the political environment at this moment seems to favor the CFTC in the race of regulators. US president Joe Biden’s Executive order gave out limited jurisdiction to the SEC Chair. He added that Republicans in the Financial Services GOP and Senate went on to favor the CFTC. Meanwhile, Senator Lummis and Gillibrand produced bills that also favored the other agency.
However, Eleanor Terrett, a Fox Business journalist reported that CFTC Chair will be testifying before the Senate. While Gary Gensler will be answering the questions related to the crypto Senate Banking committee.
Meanwhile, Deaton highlighted that SEC Chair can get a victory LBRY and Ripple case. After this Gensler might be able to swing political sentiments towards the SEC. The Commission head can go ahead and say that two federal judges agree over the nature of certain tokens as securities.