SEC boss not happy with new crypto legislation

Alex Dovbnya

SEC chairman Gary Gensler has poured cold water on a recent bill filed by Sens. Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY)

According to an Tuesday report by the Wall Street Journal, US Securities and Exchange Commission Chairman Gary Gensler is unhappy with the recent cryptocurrency law introduced by Sens. Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY).

The head of the securities regulator believes that the ambitious legislation could have a negative impact on the broader capital market.

Gensler plans to further discuss his concerns about the bill with lawmakers, the report said.

He has already reiterated his concerns about cryptocurrency exchanges offering unregistered securities.

The Gillibrand-Lummis Act, introduced in early June, would classify the bulk of cryptocurrencies as commodities. This would put crypto under the purview of the Commodity Futures Trading Commission (CFTC), which is more lenient on the industry.

The highly anticipated bill includes safeguards for cryptocurrency customers and strict requirements for stablecoin issuers.

The bill is highly unlikely to pass this year, as it must pass through several relevant committees before the Senate can hold a full vote on the legislation.

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