After the unexpected failure of FTX, the Chief Executive Officer of Intercontinental Exchange, Inc., Jeffrey Sprecher, indicated that it is probable that current securities rules would be used to govern the majority of cryptocurrencies. NYSE is owned by Intercontinental Exchange, Inc. He also said that traditional participants like as the New York Stock Exchange may enter the tokenized trading market.
Sprecher made this statement while participating at a seminar on financial services hosted by Goldman Sachs Group Inc. “They’re going to be regulated and handled like securities,” he added.
“What exactly does it entail? It implies that there will be greater openness, that client money will be kept separate, that the function of the broker as a broker-dealer will be one of oversight, and that the exchanges will be kept distinct from the brokering community.
He highlighted that the exchanges and the settlement and clearing processes would be kept completely independent. Sprecher is of the opinion that fresh legislation is not required to regulate the trade of cryptocurrencies. He went on to explain that “the laws already exist, and I believe that all that will happen is that they will be applied more firmly.”
Gary Gensler, the chair of the US Securities and Exchange Commission (SEC), has indicated that he expects his agency to be the principal regulator of cryptocurrencies since he views the majority of cryptocurrencies to be securities. Gensler has also recently refined his position on PoS cryptocurrencies being treated as securities.
Sprecher, of ICE, said, “We happen to operate a securities exchange, therefore I could see us implementing tokenized trading.” He made this statement in reference to the NYSE. He made the argument that there aren’t that many differences between it and a stock, an ETF, or any other kind of investment.
Compiled by Coinbold