Gary Gensler- Came with an agenda to take over the SEC
The Senate is likely to confirm Gary Gensler as chairman of the Securities and Exchange Commission (SEC) on Wednesday, (Apr. 4’21) and crypto-assets including bitcoin are likely high on his schedule.
What’s probable on the top of the list?
Social, Environmental and Governance
President Joe Biden has pledged swift deed to tackle what he calls a “climate emergency.”
Acting chair Allison Herren Lee has previously indicated that the SEC will focus on greater transparency and how business actions may be affecting the climate.
The GameStop condition has directed numerous calls for investigations about market manipulation, gamification of trading, and whether it is possible to move from the current two-day settlement period for stocks (T + 2) to one day.
The SEC should generate a minimal level of short-sale discovery, Pat Healy of Issuer Network stated.
Market losses only are not a ‘reason for more regulation’: SEC Commissioner
One subtle issue: Archegos was a family office that was released from registration with the SEC. This man was trading his own money, stated Amy Lynch, a former SEC compliance official currently with Frontline Compliance.
Standards of care for broker-dealers
The SEC set in place Regulation Best Interest last year, which recognized new standards of conduct for broker-dealers and needs them to recommend products that are in their customer’s best interest.
A bitcoin ETF would be a security structured by the SEC. The SEC has constantly denied requests to form a bitcoin ETF for the last eight years, citing concerns over custody, fraud, and extreme volatility.
Gensler is expected to continue to pay attention to the safety of those assets. Certainly, the SEC’s Examination Priorities quoted digital assets and the “safety of client funds and assets” as top importance.
CBW - External Analyst