Most Cryptocurrencies Are Securities, Says SEC Chair – Investopedia
U.S. Securities and Exchange Commission Chair Gary Gensler has again called for cryptocurrencies to be classified as securities and urged crypto companies to register with the agency. In an event organized by the Practising Law Institute on Sept. 8, he said the crypto industry doesn't need new guidelines and that the SEC's existing rules apply to it. His speech touched on several controversial aspects of the crypto industry, including matters on crypto intermediaries and stablecoins.
Gary Gensler clarified how the existing rules by the SEC guide the crypto industry, whether it concerns token issuance or other services like lending. In his view, most crypto or tokens qualify as investment contracts. In particular, Gensler spoke about stablecoins’ potential to be securities depending on how they’re pegged. He clarified that there’s no need to establish any special rules for the industry yet. “Nothing about the crypto markets is incompatible with the securities laws,” he said.
Gensler double-downed that a wide range of services provided by crypto intermediaries, such as an exchange, broker-dealer, clearing agent, or custodian, is under the SEC's purview and should be registered accordingly. This is because these intermediaries may act as traditional security platforms since they operate order books and facilitate crypto transactions, he said.
While addressing the audience of attorneys, Gensler said, "If you fall into any of these buckets [crypto service provider], come in, talk to us, and register." "Don't wait for us to knock on your door."
Gensler said he would support Congress giving a sister regulator of the SEC more authority in the oversight of cryptocurrencies such as bitcoin.
He said the Commodity Futures Trading Commission will look forward to working with Congress to gain more authority to oversee and regulate "nonsecurity tokens and their intermediaries."
This is perhaps the clearest indication yet that the SEC will continue to regulate the crypto industry based on existing rules. It is not good news for crypto entrepreneurs and enthusiasts who hoped that one-day financial watchdog would make some regulations according to crypto's structure.
Practicing Law Institute. ''The SEC Speaks 2022''
SEC
Cryptocurrency News
Cryptocurrency News
Cryptocurrency News
Government News
Cryptocurrency News
When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site.
