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Gensler, SEC Chair, outlines plans for crypto trading, exchanges, investor protection, and bitcoin ETFs

SEC Chair Gensler Outlines Plans for Crypto Trading, Exchanges, Investor Protection, Bitcoin ETFs

Gary Gensler (chairman of the U.S. Securities and Exchange Commission) has described how the SEC intends to regulate the cryptocurrency industry. Gensler addressed investor protection concerns and discussed the SEC’s plans to regulate crypto trading, exchanges lending, platforms, defi platforms and exchange-traded fund (ETFs) regulation.

Gary Gensler Outlines SEC’s Crypto Priorities

At the Aspen Security Forum on Tuesday, Gary Gensler, Chairman of

SEC, presented the agency’s plans for regulation of cryptocurrency at the Aspen Security Forum. He described:

Right now, we just don’t have enough investor protection in crypto. It’s more like the Wild West at the moment. This asset class is full of fraud, scams and abuse in some applications. I worry that a lot will be affected if we don’t address these problems.

He explained that there is a lot of hype surrounding crypto assets. In many cases, investors aren’t able to get rigorous, balanced, and complete information.”

Regulating Crypto Platforms: Gensler Says Many Are Offering Unregistered Securities

The chairman of the SEC explained that many tokens can be offered and sold as securities. He stated, “I have urged staff members to continue to protect investors when unregistered securities sales are made.”

Next. The chairman stated that he believes crypto trading platforms and lending platforms and decentralized finance platforms (defi), platforms “can implicate securities laws” and, in some cases, the commodities laws as well.

He stressed that cryptocurrency trading platforms don’t offer the same protection for investors as traditional exchanges like the New York Stock Exchange. He also stated that some overseas platforms permit U.S. investors trade cryptocurrencies via virtual private networks (VPNs), bypassing regulations.

Gensler emphasized:

Make no mistake: To the extent that there are securities on these trading platforms, under our laws they have to register with the Commission unless they meet an exemption … If a lending platform is offering securities, it also falls into SEC jurisdiction.

Regulating Investment Vehicles With Crypto Exposure, Bitcoin ETFs

The chairman also discussed investment vehicles that offer exposure to crypto assets, such as mutual funds that invest on bitcoin futures on Chicago Mercantile Exchange.

“I anticipate that there will be filings with regard to exchange-traded funds (ETFs) under the Investment Company Act (’40 Act). When combined with the other federal securities laws, the ’40 Act provides significant investor protections,” Gensler opined, adding:

Given these important protections, I look forward to the staff’s review of such filings, particularly if those are limited to these CME-traded bitcoin futures.

Gensler also discussed custody of crypto assets. He stated: “Custody protections can be key to preventing the theft of investor assets and we will look to maximize regulatory protections here .”

SEC Needs More Resources to Protect Investors

Gensler stated that the SEC will continue to exercise its “authorities as long as they go .”

He claimed that there were “some gaps” in the regulation of crypto assets.

We need more Congressional powers to ensure that transactions, products and platforms do not slip through regulatory cracks. This volatile and growing sector requires additional resources.

The former MIT blockchain professor proceeded to emphasize that the SEC is ready to work closely with Congress, the administration, and other regulators worldwide to oversee the crypto space. He stated:

In my opinion, crypto trading, lending and defi platform should be the priority of legislation. Additional plenary authority would be a benefit to regulators in order to create rules and attach safeguardrails for crypto trading and lending.

What do you think about Gensler’s comments on regulating the crypto industry? Please leave your comments below.

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Curve Finance launches scrvUSD, a decentralized yield-bearing stablecoin

Curve Finance launches yield-bearing stablecoin, Savings-crvUSD (scrvUSD). scrvUSD stabilizes borrowing rates and enhances DeFi composability. Curve has partnered with The Open Network to boost ecosystem integration and efficiency. Curve Finance, a leading decentralized finance (DeFi) platform, has launched a new decentralized yield-bearing stablecoin called Savings-crvUSD (scrvUSD) to offer low-risk returns for investors and further scale…

Curve Finance launches yield-bearing stablecoin, Savings-crvUSD (scrvUSD).
scrvUSD stabilizes borrowing rates and enhances DeFi composability.
Curve has partnered with The Open Network to boost ecosystem integration and efficiency.

Curve Finance, a leading decentralized finance (DeFi) platform, has launched a new decentralized yield-bearing stablecoin called Savings-crvUSD (scrvUSD) to offer low-risk returns for investors and further scale its crvUSD stablecoin.

The new product aims to stabilize the borrowing rates for crvUSD while enhancing composability within the DeFi ecosystem.

The scrvUSD stablecoin

Launched on November 13, 2024, the scrvUSD stablecoin allows users to mint the token by depositing crvUSD into the scrvUSD module. The underlying crvUSD is overcollateralized by digital assets such as Ethereum (ETH), Wrapped Bitcoin (WBTC), and others, providing security to users’ funds.

Crucially, Curve Finance has emphasized that funds in scrvUSD are not rehypothecated or moved from the vaults, ensuring that the stablecoin remains a safe and sustainable option for investors.

According to Curve Finance founder Michael Egorov, the scrvUSD module is already sustainable, with over 3 million crvUSD stored in the vault. This initiative is designed to offer stability to the DeFi ecosystem, addressing the volatility concerns associated with traditional stablecoins.

The introduction of scrvUSD also marks an important step in Curve Finance’s broader strategy to enhance composability within decentralized finance.

Composability refers to the ability of various DeFi applications to work together seamlessly, allowing users to access innovative financial products.

Curve Finance’s move to scrvUSD follows its earlier decision in June 2024 to adopt crvUSD as the primary fee distribution asset, signalling a shift towards further integration across DeFi platforms.

Curve Finance’s partnership with TON

Additionally, Curve Finance is expanding its ecosystem through a collaboration with The Open Network (TON). This partnership seeks to increase interaction and composability between the two decentralized networks, fostering new opportunities for traders and investors.

As part of this collaboration, a competition was launched to develop Curve’s Constant Functional Market Maker (CFMM) — a tool designed to curb volatility and market slippage, thus improving overall efficiency in the DeFi space.

Through these strategic moves, Curve Finance continues to reinforce its position as a pivotal player in the evolving DeFi landscape.

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Crypto critic Elizabeth Warren rises to top Democrat on Senate Banking Committee

Senator Elizabeth Warren will be the top Democrat on the Senate Banking, Housing, and Urban Affairs Committee. The crypto critic’s new role means her input could have an impact crypto regulation in the US. Senator Elizabeth Warren, the top crypto critic in the US Senate, has confirmed she’s set to be the senior most Democrat…

En bild av senator Warren som representerar Massachusetts

Senator Elizabeth Warren will be the top Democrat on the Senate Banking, Housing, and Urban Affairs Committee.
The crypto critic’s new role means her input could have an impact crypto regulation in the US.

Senator Elizabeth Warren, the top crypto critic in the US Senate, has confirmed she’s set to be the senior most Democrat on the crucial Senate Banking, Housing, and Urban Affairs Committee.

Warren, who defeated pro-crypto lawyer John Deaton for the Massachusetts senate seat in the 2024 elections, noted this in a statement published on Wednesday. Notably, the Senate Banking Committee is the entity that’s set to handle critical legislation on cryptocurrencies.

While Republicans have control of the Senate, any changes to this scenario likely during the mid-terms could see Warren become even more influential in the next two years.

Warren’s new Senate role

Warren’s elevated position follows the exit of Sherrod Brown, the former chairperson of the Senate Banking Committee. The Ohio Democrat lost in the 2024 U.S. election, with his defeat coming amid massive effort from across the crypto space to support the winner and new Ohio Senator-elect Bernie Moreno.

The 2024 US election has also seen the most pro-crypto lawmakers elected.

However, the crypto industry’s larger concern will be on the influence of the Dem’s ranking member in Senate. While Warran did mention crypto in the statement, she said:

“In the aftermath of the 2024 election, it’s powerfully important for Democratic leadership to show that we can make life more affordable for working people and to act with urgency to rebuild our middle class. For Massachusetts and hard-working families nationwide, this new role means a better chance to advance solutions like building more housing to lower prices and protecting consumers from private equity greed and special interest scams.”

Cryptocurrencies have rallied since Donald Trump won a second term by defeating Democrat Kamala Harris in Nov. 5. Bullish sentiment has seen Bitcoin break past the previous bull market’s high to hit highs of $93k.

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BlackRock’s spot Bitcoin ETF hits $40 billion, sets new record in 211 days

BlackRock’s IBIT reached a new record in 211 days, surpassing iShares Core MSCI Emerging Markets ETF’s previous record of 1,253 days BlackRock’s new record comes two weeks after it hit $30 billion in net assets at the end of October BlackRock is now in the top 1% of all ETFs by assets and is bigger…

blackrock ceo larry fink crypto digitalising gold

BlackRock’s IBIT reached a new record in 211 days, surpassing iShares Core MSCI Emerging Markets ETF’s previous record of 1,253 days
BlackRock’s new record comes two weeks after it hit $30 billion in net assets at the end of October
BlackRock is now in the top 1% of all ETFs by assets and is bigger than all the ETFs launched in the past 10 years

BlackRock has done it again. This time its IBIT spot Bitcoin exchange-traded fund (ETF) has hit a record of over $41 billion in net assets in 211 days.

News of the milestone comes two weeks after BlackRock reached $30 billion in net assets in 293 days at the end of October.

Posting on X in October, Bloomberg analyst Eric Balchunas, said what BlackRock has achieved is an “all-time record,” adding “the old record was $JEPI which did it in 1,272 days. $GLD took 1,790 days. Unreal.”

With BlackRock’s new achievement, it’s surpassed the previous record of 1,253 days held by iShares Core MSCI Emerging Markets ETF, according to Balchunas.

In a post on X, he said: “[BlackRock’s] now in Top 1% of all ETFs by assets and at 10mo old it is bigger than all 2,800 ETFs launched in the past TEN years.”

JUGGERNAUT: $IBIT has hit the $40b asset mark (a mere two wks after hitting $30b) in a record 211 days, annihilating prev record of 1,253 days held by $IEMG. It’s now in Top 1% of all ETFs by assets and at 10mo old it is bigger than all 2,800 ETFs launched in the past TEN years. pic.twitter.com/WTATlpShUq

— Eric Balchunas (@EricBalchunas) November 13, 2024

Now, BlackRock holds more than 467,000 Bitcoin, valued at $41.8 billion, according to iShares data.

Reaching new heights

The new record comes as Bitcoin reached an all-time high of over $93,000 on November 13 in a continued rally that’s showing no signs of slowing.

The upward trajectory is partly due to Donald Trump being re-elected as US President earlier this month. Following news of his win, Bitcoin broke the $75,000 mark. It then passed $82,000, and continued to $84,000, before pushing to $87,000 earlier this week.

In September, Bernstein analysts predicted that Bitcoin would surge to between $80,000 and $90,000 if Trump won the US election. With that prediction having now passed, Bernstein analysts believe Bitcoin could reach $200,000 in 2025, urging investors to “buy everything they can.”

It remains to be seen how far Bitcoin will go, but for now, it’s showing no signs of slowing down.