US SEC and CFTC Chairman Participate in Senate Budget Hearing to Discuss Issues Related to Encryption

US SEC and CFTC Chairman Participate in Senate Budget Hearing to Discuss Issues Related to Encryption

Translator: Play the coin family ElaineHu

The chairman of the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), two financial regulators, attended a budget hearing today in Congress (May 8).

The Senate Appropriations Committee’s hearing informed the Senate of the budgetary needs of the agencies and outlined the goals and initiatives.

SEC Chairman Jay Clayton and CFTC Chairman J. Christopher Giancarlo pointed out in their respective testimonies that the two institutions understand the importance of digital assets and blockchain technology.

According to Clayton, the US Securities and Exchange Commission's Office of Compliance Inspection has classified “digital assets including cryptocurrencies, currencies, and tokens” as high-risk investments.

In addition, the SEC has requested four new positions in the trading and marketing department – ​​responsible for overseeing “primary securities market participants” – one of which is to improve their expertise in the digital asset market.

At the CFTC's budget hearing, Giancarlo recalled that he had previously listed “the phenomenal speed of exponential technology change, the non-intermediation of traditional participants and business models, the need for technical literacy and big data capabilities” as a regulator. The huge challenges currently facing.

Giancarlo went on to say that the CFTC is working hard to adapt to this environment and become a “quantitative regulator”. He added that the CFTC should “be able to conduct independent market data analysis across different data sources, including decentralized blockchains and networks, without relying on self-regulatory agencies and market intermediaries”.

The CFTC chairman went on to say that the committee's budget proposal would enable it to “expand its core economic expertise to conduct in-depth analysis and empirical research in areas that it considers important”.

As Cointelegraph previously reported, there is no uniform federal classification for cryptocurrencies. One consequence of this is that although the SEC and CFTC standards are legally valid and enforceable, they do not have the same regulatory requirements.

Earlier this year, US regulators relaunched the Token Taxonomy Act, which aims to exclude digital assets from securities laws and provide a unified regulatory framework for these assets.