Shine Trader Limited reports:
U.S. Securities and Exchange Commission Chairman Gary Gensler will appear before the Senate Banking Committee on September 14. In his first appearance before Congress as SEC chairman, he will mention a number of his “top policy goals”.
Documents released according to the senate, in his prepared testimony, said he to encrypt currency “neutral” was the attitude of technology, emphasizes the encryption monetary field should strengthen the investor protection, urged relevant platform with the SEC for questioning, also suggested that hope to $28 trillion of corporate bonds, municipal bonds and asset-backed securities stricter regulation.
According to his speech, SEC staff is reviewing five market structures: Treasury, non-Treasury fixed income, equities, securities-based swaps and crypto asset markets. The SEC prioritizes market structure, analysis of forecast data, issuer and issuer disclosures, and fund and investment management.
The SEC wants the Treasury market to be more resilient and the non-Treasury market to be more transparent, Gensler said. He also said the SEC may let those debt platforms register with the SEC.
Against the Treasury, fixed income market, he asked the SEC staff put forward advice on how to improve efficiency and transparency, the focus is the size of the $11 trillion of corporate bonds, scale of $4 trillion of American municipal bonds, and the housing mortgages, car loans and credit card loans in support of the $13 trillion of asset-backed securities. He said:
“This market is very important for issuers and is almost two and a half times the approximately $10.5 trillion in commercial bank loans in the U.S. economy.”
On the stock market, Gensler wants more competition in the flow of stock orders. He said the SEC is prepared to move faster on a draft stock settlement plan because faster stock settlement reduces market risk. The SEC may require disclosure of securities-based swaps.
As for the crypto market, Gensler urged crypto exchanges to improve their communication with the SEC. Many major crypto trading platforms need to register with the SEC, Gensler said. He sees tough regulation as one of the SEC’s top priorities.
He still calls the crypto market more like the “Wild West” or the old world before securities laws, with a lack of investor protections and rampant fraud, scams and abuse.
Gensler revealed that the SEC is working with the COMMODITY Futures Trading Commission (CFTC), the Federal Reserve, the Treasury Department, the Office of the Comptroller of the Currency (OCC), and other regulatory agencies in the President’s Working Group on Financial Markets to provide more protections for investors in cryptocurrencies, focusing on: Offering and sales of crypto tokens, trading and lending of crypto assets, staboins, investment vehicles providing exposure to crypto assets or crypto derivatives, and crypto asset escrow.
Some analysts believe that Gensler’s strict attitude towards the crypto market indicates that the SEC is not far away from formally approving a legal bitcoin ETF.