SEC Chair Gensler Calls for More Regulatory Sunlight in Cryptocurrency Sector

[sirty143]

SEC Chair Gensler Calls for More Regulatory Sunlight in Cryptocurrency Sector at Law Conference

At a recent gathering at the Columbia Law School Conference, Gary Gensler, the chair of the U.S. Securities and Exchange Commission, addressed the assembly on the topic of the digital currency landscape. His discourse highlighted the “benefits of mandatory disclosure,”... See more for yourself here.

Your opinion is greatly appreciated.

[hugeblack]

Investors avoid voluntarily disclosing their investments because of the possibility of being taxed. If the tax were low and the registration requirements were less stringent, we would see more investors disclosing their net investments in cryptocurrencies. Also, the decentralized nature and high transparency that characterize cryptocurrencies would be easier to regulate if there was. Wider cooperation, especially since Bitcoin and most cryptocurrencies do not describe themselves as private cpins.

[Don Pedro Dinero]

Well, is anyone surprised that Gensler, being a bureaucrat, is calling for more regulation? What would be surprising would be if he came out saying that bitcoin has to be used P2P to get rid of the state (of which he is a part) and central banks.

Investors avoid voluntarily disclosing their investments because of the possibility of being taxed. If the tax were low and the registration requirements were less stringent, we would see more investors disclosing their net investments in cryptocurrencies. Also, the decentralized nature and high transparency that characterize cryptocurrencies would be easier to regulate if there was. Wider cooperation, especially since Bitcoin and most cryptocurrencies do not describe themselves as private cpins.

I don't trust that the fees will be low, but I am sure that in a few years cryptocurrency transactions in CEX will be automatically transferred to state treasuries and will appear in the draft of the income tax return. Although there will always be DEX and other ways to escape this.

[joniboini]

I am sure that in a few years cryptocurrency transactions in CEX will be automatically transferred to state treasuries and will appear in the draft of the income tax return. Although there will always be DEX and other ways to escape this.

In my country this is already the case, although the user still needs to report it themselves, they don't have to calculate their tax manually since exchanges will do it for them. I can say that there is no major pushback against it since the fee is quite low. I doubt my government's stance will change anytime soon, but I can see them increasing the tax ratio instead of focusing on forcing people to disclose their holdings. I don't think Gensler's worry applies in my local market, even if it did he probably should focus on providing a clear regulation first before blindly forcing people to follow the law. CMIIW.

[hugeblack]

I don't trust that the fees will be low, but I am sure that in a few years cryptocurrency transactions in CEX will be automatically transferred to state treasuries and will appear in the draft of the income tax return. Although there will always be DEX and other ways to escape this.

If adoption and government compliance continue, you will see cryptocurrencies in your bank account and there will be no need for CEXs as these platforms have many disadvantages and banks will soon find it is an ideal opportunity to implement compliance, pay taxes and benefit from fees.

[joniboini]

I'm not sure how banks will replace CEX unless they want to launch a centralized exchange platform. Maybe they can launch an app where people can trade their crypto with money directly, but would the government allow that to happen? I'm referring to how banks don't touch stock trades, options, etc. Is regulation the reason why they don't monopolize everything then? If so, would the profits outweigh the cost if the government allowed them to provide the market while acting as a custody for its customers? Alternatively, they can continue acting as a custodian and enjoy fees from exchanges without exposing themselves to risks like hacks, etc. CMIIW.