Crypto Assets to be Regulated as Securities by SEC

Senator Elizabeth Warren’s bill looks forward to hand-over the control to the SEC, imposing new obligations on centralized crypto firms, Jeffrey Sprecher thinks this would be good for crypto. Now, most crypto assets are likely to be regulated as securities in the United States as per the CEO of Intercontinental Exchange Inc (ICE), Jeffrey Sprecher, and Senator Elizabeth Warren.

A Big Decision after the FTX Collapse –

It seems as if the Crypto world is still shaken from the FTX collapse, and to avoid such a situation in the future this step has been taken. The renewed focus on regulating crypto assets as securities come to light due to the sudden FTX collapse. It causes a loss of billions from the market, & investors can claim nowhere for their financial losses as the company has also filed for bankruptcy.

Statement of related authorities –

At the financial services conference by Goldman Sachs Group Inc, Sprecher, whose ICE operates the New York Stock Exchange, stated crypto assets are “going to be regulated and dealt like securities.” He also said, “this will ultimately result in far greater consumer protections and regulatory oversight of centralized exchanges and brokers.”

“What does that mean? It means more transparency, it means segregated client funds, the role of the broker as a broker-dealer will be overseeing and the exchanges will be separated from the brokers. The settlement and clearing will be separated from the exchanges.”

Alex Sarabia a spokesperson for Warren confirmed with Semafor the senator is also looking toward the SEC. Mentioning her roles & responsibility in this complete scenario she said, “She’s working on crypto legislation and believes that financial regulators, including the SEC, have broad existing authority to crack down on crypto fraud and illegal money laundering,”