Most Crypto Should Be Regulated as Securities
The collapse of the FTX exchange has prompted officials and traders to once again float the idea that the majority of cryptocurrencies should be treated as securities.
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The head of NYSE-owner Intercontinental Exchange Inc ICE Chief Executive Jeffrey Sprecher has a plan.
According to it, most cryptocurrencies should be regulated under existing securities laws after the FTX collapse.
They're going to be regulated and dealt with like securities,” Sprecher said of cryptocurrencies at a financial services conference by Goldman Sachs Group Inc. “What does that mean? It means more transparency, it means segregated client funds, the role of the broker as a broker-dealer will be overseeing and the exchanges will be separated from the brokers. The settlement and clearing will be separated from the exchanges.
He added that the New York Stock Exchange may also move into tokenized trading and does not believe that new laws are needed to govern cryptocurrency trading.
The laws already exist and I think they're just going to be implemented more strongly,” Sprecher said, adding: “We happen to run a securities exchange, so I could see us doing tokenized trading, It's not that different than a stock or an ETF or any other security.
The Chair of the U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler added weight to Sprecher’s ideas, saying that the SEC is slated to be the primary cryptocurrency regulator as he considers most crypto tokens to be securities.
This is not the first time the idea of regulating crypto as securities has been floated. Ripple is still at odds with the SEC which took the company to court in 2020 to prove that the XRP is a security.
While the court is yet to issue a verdict, Gene Hoffman, the COO at Chia.net, believes that the only outcome is that a federal judge will rule that Ripple's sales of XRP made XRP a security.
Source: Gene Hoffman’s Twitter
The collapse of the FTX exchange has stirred the community, with the ramifications felt all across it.
GNcrypto extensively covered the development.
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