Cryptocurrency law could undermine US financial stability

Gary Gensler, the head of the U.S. Securities and Exchange Commission (SEC), said that the recently proposed bill to create a regulatory framework for cryptocurrencies would weaken investor protection in the market, The Wall Street Journal reported during the CFO Summit.

«We don’t want our stock exchanges and large companies to go beyond the laws that have been in place for 90 years and have been good for investors and U.S. economic growth,» Gensler explained, emphasizing that the changes could undermine the $ 100 trillion capital protection.

The Responsible Financial Innovation Bill, which the SEC chairman opposed, aims to create a regulatory framework for cryptocurrencies, regulate many aspects of sales and taxation. According to Gensler, after the law is passed, some altcoins will be considered securities, while bitcoin (BTC) and ethereum (ETH) will be considered commodities, which will make it more difficult to control their circulation and protect investors. To protect future investors in crypto exchanges, the SEC has launched an investigation into the possible involvement of exchanges in insider trading.