“I’m talking about a single set of rules for exchanges,” Gensler fills in the gaps in the regulation of cryptocurrencies in the US.

Chairman of the US Securities and Exchange Commission (SEC) Gary Gensler (Gary Gensler) plans to conclude a formal agreement with the US Commodity Futures Trading Commission (CFTC) for the effective regulation of cryptocurrencies. This is reported by the Financial Times.

Gensler explained that it is necessary to develop uniform rules so that attackers do not use gaps in regulation to commit fraud and manipulation in the market. To this end, the CHAIRMAN of the SEC is in the process of drafting a Memorandum of Understanding (MoU) between the SEC and the CFTC. The document should eliminate all possible gaps in the regulation of crypto.

As always, the head of the SEC claims that all the proposed initiatives are aimed at protecting investors. The jurisdiction of the Securities and Exchange Commission includes companies offering tokens classified as securities (security tokens). At the same time, the memorandum provides for the transfer of information about the CFTC product if a digital asset that fits the definition of a commodity (commodity token) is placed on a platform controlled by the SEC.

“I’m talking about a single set of rules for exchanges that protects all trading activity regardless of the pair – whether it’s a security token versus a security token, a security token against a commodity token, or a commodity token against a commodity token. This will protect investors from fraud, frontrunning*, manipulation, as well as ensure the transparency of the order book,” Gensler explained.

This approach echoes a bill introduced by Senators Cynthia Lummis and Kirsten Gillibrand earlier this month. The document is aimed at the full inclusion of digital assets in the US financial system. The CFTC, according to the document, will deal with almost all digital assets (including bitcoin) that are not securities. At the same time, the bill includes a provision that allows the SEC to challenge in court the status of a cryptocurrency if the regulator considers that it is similar to a security.

* Frontrunning It is an illegal practice where a broker places his own order in front of a large client order that he believes will cause the market to move. A trader receives an order from a client to purchase an asset, but he first buys it for himself, and only then sells it to a trader at a higher price.