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- The Securities and Exchange Commission will welcome Dan Berkovitz as General Council
- Despite the fact that Berkovitz’s time at the CFTC was supposed to finish in 2023, he announced in September that he would be leaving on October 15
- Berkovitz will work for the American people under Gary Gensler’s leadership
The CFTC’s enforcement activities in the crypto field have been aggressive, according to the commissioner, who also intimated that decentralized financial systems are likely prohibited under the Commodity Exchange Act. Following his retirement in October, Dan Berkovitz, one of three commissioners now serving on the US Commodity Futures Trading Commission, will join the Securities and Exchange Commission as general counsel.
SEC announces Berkovitz as general counsel
The Securities and Exchange Commission(SEC) announced that Berkovitz would start as general counsel on November 1, two weeks after standing down as a commissioner of the Commodity Futures Trading Commission, or CFTC, where he has served since 2018. Berkovitz stated that he will collaborate with SEC Chairman Gary Gensler on a regulatory agenda to improve investor safety.
Berkovitz’s time at the CFTC was supposed to finish in 2023, but he announced in September that he would be leaving on October 15. Following his departure, US President Joe Biden named Kristin Johnson and Christy Goldsmith Romero to replace former CFTC Chair Heath Tarbert and Brian Quintenz. Berkovitz’s replacement is yet to be announced by the White House.
Berkovitz said the CFTC’s crypto enforcement actions had been robust this month, citing a $100 million civil monetary penalty against derivatives exchange BitMEX as an example. The CFTC commissioner has also intimated that decentralized finance platforms are likely prohibited under the Commodity Exchange Act, claiming that there is a spectrum of centralization around DeFi projects that might make them subject to registration with the government agency.
SEC statement of Berkovitz on applying crypto policy in the area of Tokens
Under Gary Gensler’s direction, Berkovitz will serve the American people, arguing that numerous crypto initiatives have developed securities that fall under the SEC’s regulatory framework. The SEC head stated in August that he aims to implement crypto-related policy reforms in the areas of token offerings, decentralized finance, stablecoins, custody, exchange-traded funds, and lending platforms.
Berkovitz, who previously stated that he intends to resign from the Commodity Futures Trading Commission next month, will succeed John Coates, the SEC’s senior lawyer, according to a statement released by the agency on Tuesday. Berkovitz has been a Democratic CFTC commissioner since September 2018, and previously served as the derivatives regulator’s chief counsel.
While directing the CFTC during the Obama administration, Gary Gensler, who took over as SEC chairman in April, relied on Berkovitz’s assistance as the agency created rules to govern the swaps market following the 2008 financial crisis. Gensler has also laid out an ambitious agenda at the SEC, which includes the creation of hundreds of new rules as well as proposals to regulate cryptocurrency trading.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
