Today in TechREG: CFPB Wants Other Agencies to Follow Its Views
Today in TechREG, Securities and Exchange Commission (SEC) Chair Gary Gensler reminded investors that crypto assets are “highly speculative” and the agency will continue policing the industry until better rules will be in place. The Consumer Financial Protection Bureau (CFPB) launched an initiative to promote consistent enforcement of consumer financial protection laws.
SEC Chair Steps up Crypto Crusade, Sends Message to CFTC
Gary Gensler told an audience during the 2022 FINRA annual conference that until there is better regulation on the crypto space, the agency will “continue to be a cop on the beat.”
Gensler said those who buy cryptocurrency don’t usually get the disclosures that come with asset purchases of other kinds, including things like whether the trading platform is trading against them, or whether they own the assets they store in digital wallets.
The chairman reiterated that certain tokens are securities. The key difference between a commodity and security when it comes to digital tokens is the raising of money by a third party, Gensler argued.
CFPB Wants Other Agencies to Follow Its Enforcement Views
The CFPB will issue Consumer Financial Protection Circulars to government agencies and other enforcers to explain how the CFPB intends to enforce federal consumer financial law.
The CFPB is concerned that, given the broad variety of agencies responsible for enforcing federal consumer financial law, there is a risk that companies might encounter inconsistent enforcement strategies and approaches.
“Consistency is also imperative to creating a level playing field between companies that compete in the same market but are subject to the jurisdiction of different enforcers,” CFPB Director Rohit Chopra said in a blog post.
US Treasury Secretary Speaks at Brussels Economic Forum
US Treasury Secretary Janet Yellen, delivered a Tuesday (May 17) speech at the Brussels Economic Forum to discuss the transatlantic cooperation between the U.S. and Europe.
One area of discussion is taxation of digital services. The U.S. and Europe want to put an end to trade tensions between them. “We must resolve the open issues in Pillar 1 [taxation of digital services] so that the multilateral treaty can be ready for signature,” Yellen said.
EU Parliament Endorses Agreement on Digital Market Act
The EU Parliament’s Internal Market Committee endorsed the provisionally reached agreement with EU governments on the Digital Markets Act (DMA) with 43 votes in favor, one against and one abstention.
A provisional agreement on a sister proposal to regulate online platforms, the Digital Services Act, was reached on April 23. Both proposals are expected to be put up for a final vote in Parliament in July before they are formally adopted by Council and published in the EU Official Journal. The DMA regulation will enter into force 20 days following the publication, and the provisions will start to apply six months thereafter.