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Chairman Gary Gensler of the U.S. Securities and Exchange Commission (SEC) noted on Monday that the regulator is breaking its head over how to effectively oversee cryptocurrency trading.
Speaking at an event hosted by the University of Pennsylvania’s law school, Gensler said they are thinking of splitting oversight of crypto trading platforms between the SEC and the regulator of U.S. commodities.
Noting that most platforms include tokens that fit the definition of securities as well of commodities, the SEC Chair said:
“I’ve asked staff to work with the Commodity Futures Trading Commission (CFTC) on how we jointly might address such platforms that might trade both crypto-based security tokens and some commodity tokens.”
Securities and commodities are “intertwined” on crypto exchanges, Gensler added, therefore there cannot be a sole watchdog.
Gensler warned exchanges and the general public, that the latest advertisement surge of the crypto industry, such as during the Super Bowl, does not necessarily bolster its credibility.
“There is lots of innovation, but plenty of hype. As in other start-up fields, many projects likely could fail.”