The U.S. Security and Exchange Commission has disclosed that it will collaborate with the Commodity Futures Trading Commission to regulate cryptocurrency. 

On Monday, SEC chairman Gary Gensler delivered a speech at the Penn Law Capital Markets Association’s annual conference. Mr Gensler spoke on the agency’s plans to exercise regulatory supervision on the cryptocurrency market to protect investors from fraud.  

“The SEC’s remit is overseeing the capital markets and our three-part mission: protecting investors, facilitating capital formation, and maintaining fair, orderly, and efficient markets,” Mr Gensler added. “Within the policy perimeter, regulators also care about guarding against illicit activity, a role that is so important to us and our partners at the Department of the Treasury and the Department of Justice; and about financial stability, which is important to all financial regulators.” 

Mr Gensler added that both regulatory bodies would work together to supervise the operations of digital asset trading platforms, as the SEC intends to register and regulate cryptocurrency platforms and separate the custody of assets to minimise risks for investors. 

Mr Gensler’s comments came a month after President Joe Biden signed the executive order on digital assets. 

The executive order mandates government agencies like the U.S. Treasury and Department of Commerce to prepare reports on the hazards and advantages of digital assets over consumer protection, financial stability, illicit finance, economic competitiveness, financial inclusion and innovation.