Most cryptocurrencies in the United States are most likely to be regulated as securities. In the wake of Sam Bankman-Fried’s FTX bankruptcy, the regulation of cryptocurrencies got a further push.
Jeffrey Sprecher, the CEO of Intercontinental Exchange Inc (ICE), said crypto assets are going to be regulated and dealt with like securities. He outlined that it will result in far greater consumer protections and regulatory oversight of centralized exchanges and brokers.
Speaking at the financial services conference by Goldman Sachs Group Inc., Sprecher said this means more transparency, and segregated client funds. He highlighted that the role of the broker as a broker-dealer will be overseeing and the exchanges will be separated from the brokers. Moreover, the settlement and clearing will be separated from the exchanges. The executive explained that the new regulation was not necessarily required for crypto as the legal frameworks are already there in terms of securities, and they are just going to be implemented more strongly.
Senator Elizabeth Warren is working on a crypto bill that would empower the Securities and Exchange Commission (SEC) with most of the regulatory authority over the crypto space. But the bill is still in its early stages. It will cover a host of issues, including taxation, regulation, national security, and climate. Warren is working towards imposing regulatory obligations such as audited financial statements and bank-like capital requirements.
Alex Sarabia, a spokesperson for Warren, said the senator believes that financial regulators have broad existing authority to crack down on crypto fraud and illegal money laundering.