The two major regulators stop wrestling, SEC chairman to formally meet with CFTC, seeking unified authority over cryptocurrency regulation.

When it comes to the regulation of cryptocurrencies, the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been in a tug-of-war situation. However, recently, SEC Chairman Gary Gensler stated in an interview that the SEC and CFTC will officially engage in discussions to integrate cryptocurrency regulation, aiming to unify regulations across regulatory agencies.

Gary Gensler recently stated in an interview with the UK's Financial Times that integrating a set of regulations can not only provide clear legislation but also protect crypto investors. A unified approach by financial institutions can ensure decentralized supervision and prevent loopholes.

"What I'm talking about is a manual of regulations for all trades on exchanges, whether it's token-to-token, token-to-commodity, or commodity-to-commodity pairings, all are subjects of protection."

Gary Gensler mentioned that he has been in discussions with the CFTC to reach a formal agreement on transparency and legislative clarity in the digital asset space.

In early June, US Senators Kirsten Gillibrand and Cynthia Lummis introduced new legislation that categorizes Bitcoin and Ether as commodities under CFTC jurisdiction. Cryptocurrencies will be classified as commodities or securities, depending on the purpose of the asset and the rights or powers it conveys to consumers.

Having previously served as the CFTC chairman, it is anticipated that Gensler's discussions with the CFTC will help in positioning and regulating crypto assets. Currently, the distinction between the two entities is that virtual assets considered securities fall under the SEC's jurisdiction, while assets representing commodities are overseen by the CFTC.

Gensler believes that a manual of regulations for exchanges can truly assist investors. "If this industry is going to move forward, it's going to build greater trust in these markets."

This article is authorized to be republished from Horizon News Network.