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Securities and Exchange Commission (SEC) Chair Gary Gensler said his agency is considering how to split oversight of crypto trading platforms between the SEC and the regulator of U.S. commodities, as most platforms include tokens that fit definitions of securities as well as commodities.
“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,” he said during Monday remarks at an event hosted by the University of Pennsylvania’s law school.
Gensler said securities and commodities are “intertwined” on today’s crypto trading platforms, suggesting neither agency could act as a sole watchdog over such venues.
The chairman shared his customary suspicions at the conference, which focused on the future of crypto, saying all the recent industry advertising – including during the Super Bowl – doesn’t equate with credibility.
“There is lots of innovation, but plenty of hype,” Gensler said. “As in other start-up fields, many projects likely could fail.”