The US Securities and Exchange Commission (SEC) is considering new supervisory rules for some crypto exchanges and platforms trading on US treasuries.
Chairman of the US SEC, Gary Gensler noted that the move is made to improve competition and transparency in the market.
He also stated that staff have been asked to add some Treasury trading platforms into the commission’s regulatory framework.
Gensler also noted that the SEC may consider including other types of trading platforms in the new ruling if the commission finds it necessary.
The plan also included crypto trading platforms as they fall within the commission’s oversight under the new rule.
Additionally, Gensler opined that the SEC may alter the rules on equity trading to make sure that smaller stocks are priced in smaller increments. The plan will also consider the reevaluation of the components to best offers and bids.
Concerns Regarding Liquidity In The US Treasury Market
There are plans to look into any disagreements or conflicts arising from digital engagement practices by online brokers. The commission wants to make sure the law prohibits brokers from going against the rules and regulations when marketing their products and services to investors.
There have been liquidity concerns in the US liquidity market, and the SEC chief is likely adjusting the oversight rules to address the issue.
The SEC wants to prevent any situation that may warrant market players to force the US Federal Reserve, leading to a surge in interest rates.
The SEC Takes Cautious Steps On Bitcoin ETFs
Although the SEC has welcomed the Bitcoin exchange-traded fund (ETF), it is still cautious not to cause increased risks in the market.
SEC’s recent announcement is coming only days after Direxion applied for an inverse fund for bears and Valkyrie applied for a leveraged Bitcoin ETF.
The agency rejected one of the applications for a Bitcoin ETF last week due to the high risk the leveraged financial products carry.
SEC is also seeking to have more regulatory authority over stablecoins such as Tether (USDT). It’s currently seeking legal power to have stronger control over these tokens.
