SEC Chairman Gary Gensler reinforced his view on cryptocurrencies in his speech prepared for a forum. Gensler said cryptocurrency firms are subject to the same rules as traditional finance. Gensler also said he wasn’t surprised he had issues with his stance, given the industry’s “widespread non-compliance.”
SEC Chairman does not back down: It also applies to cryptocurrencies!
US SEC Chairman Gary Gensler does not back down despite the reactions from the industry. Gensler reinforced his views in a prepared speech at the 2023 Securities Enforcement Forum on Wednesday. The SEC Chairman goes on to say that many cryptocurrencies are subject to existing securities laws. He continues to insist on his long-standing view in this direction. In this regard, Gensler says that crypto companies are subject to the same rules as traditional finance.
Meanwhile cryptokoin.comAs you’ve been following from , speculation has been going on for a week about the status of pending applications for spot Bitcoin ETFs that the regulator has yet to approve. Gensler’s comments came in the middle of this. SEC Chairman said the following about cryptocurrencies in his last speech:
There is nothing in the cryptoasset securities markets to suggest that investors and issuers are any less deserving of the protections of our securities laws. Congress might have said in 1933 or 1934 that the securities laws applied only to stocks and bonds. However, Congress included a long list in the definition of securities, including ‘investment contract’.
The regulator’s approach draws intense criticism
The SEC filed numerous lawsuits against crypto companies last year. These include US-based Coinbase and Binance, the world’s largest crypto exchange. In these cases, the agency usually investigates whether the transactions constitute investment contracts. Therefore, it is working to determine whether it is subject to securities laws. In this vein, he cites the Howey Test, a 1946 U.S. Supreme Court case involving citrus groves. But this approach has drawn criticism from some, including Coinbase. Coinbase says the SEC has expanded its arguments in Howey “beyond recognition.”
Interesting statement from Gensler: Don’t start with cryptocurrencies now!
The crypto industry has experienced turmoil, particularly in the past year due to the collapses of crypto exchange FTX, crypto hedge fund Three Arrows Capital, and algorithmic stablecoin Terra USD. Gensler then described the industry’s problems as “not surprising.” In this context, the SEC Chairman made the following criticisms about cryptocurrencies.
This is an area rife with scams, scams, bankruptcies and money laundering. Many organizations in this field claim to operate beyond the reach of regulations published before Satoshi Nakamoto’s famous ‘white paper’. However, they do not shy away from seeking the protection of the law in bankruptcy court and when litigating their private disputes.
Gensler also spoke generally about the SEC’s accusations against others, including a case involving the former CEO of McDonald’s. SEC Chairman: “And don’t get me started on cryptocurrencies. “I won’t even name all the individuals we’ve accused in this deeply discordant field.” said.
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