By Katanga Johnson and John McCrank

WASHINGTON, (Reuters) – The U.S. Securities and Exchange Commission chair announced Tuesday that it would consider new oversight regulations for certain platforms trading U.S. Treasuries. This move aims to increase transparency and promote competition.

Gary Gensler said he asked staff to revisit a 2020 proposal issued https://www.reuters.com/article/us-usa-sec-marketdata-idINKBN26J2WK under the Trump administration intended to treat electronic trading platforms for corporate debt and municipal securities more like stock exchanges.

Gensler said that he had asked his staff to consider (bringing )… specific Treasury trading platforms under the SEC’s regulatory regime) and make suggestions. He said that staff would consider whether “other key platforms could also be added.”

According to analysts, the new rules may allow potential trading platforms in crypto currency to be captured.

SEC stated in its 2020 proposal that the agency wanted to improve regulators’ ability to hold businesses accountable for technological glitches that impact trading, and to assess platforms’ preparedness for cybersecurity attacks. Mandating data backups is one way to ensure disaster- or emergency situations are covered.

Gensler made the comments amid concerns about liquidity in the U.S. Treasuries Market, which is worth $14.8 trillion. Inflation gains may prompt the Federal Reserve’s decision to increase interest rates. This is after the Federal Reserve has been able to flatten the yield curve with ultra-low rates at the fastest pace since 2011.

Widely expected, the Federal Open Market Committee (FOC) will announce Wednesday it will start to reduce its $120-billion-per-month bond purchasing program.

Gensler stated that rule changes to equity trading may reduce the price increments for smaller companies. The SEC also plans to reevaluate the best bid and most attractive offer elements.

He said the agency will soon address potential conflicts of interest in how online brokers use digital engagement practices when marketing to investors after it reviews public comments it sought https://www.reuters.com/legal/transactional/us-markets-regulator-wants-public-feedback-firms-digital-engagement-practices-2021-08-27 in October.