The US Securities and Exchange Commission is planning to split the oversight role of crypto trading platforms with the Commodities Futures Trading Commission.
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The SEC chairman, Gary Gensler, says that most blockchain protocols have tokens that fall under the securities and commodities category.
The commission has directed its staff to collaborate with CFTC for a joint approach to regulating the intertwined aspects, saying one entity cannot work alone.
Gensler spoke during an event hosted by the University of Pennsylvania Law School that the hype and publicity of crypto service providers in sporting events don’t guarantee credibility.
The Chair adds that despite the innovation in the cryptocurrency space, there was also a lot of hype marketing adding that not all projects will succeed.
The commission is assessing whether the blockchain platforms that raise and keep customers’ funds have adequate measures against risks in place.