It has been a matter of debate for a long time how he will take a stance on regulating the cryptocurrency markets. SEC, on the other hand, is quite insistent on subjecting the sector to the ‘securities law’. SEC chairman Gary Gensler also recently made a statement on the subject. Gensler recently stated that most coin offerings fall under the securities law.
Gensler, on the other hand, started a new debate on whether crypto tokens are a security or a commodity, with his latest comment. The President drew attention by making interesting comments at a virtual conference organized by Robert F. Kennedy Human Rights.
Warning from SEC Chair on Investor Protection
Gary Genslerreiterated its previous warnings regarding investor protection in the crypto space. He said the regulator will use the existing framework to focus on crypto projects. He warned investors that some crypto projects that offer returns may be “too good to be true.”
However, he noted that the majority of tokens currently in the crypto market have securities properties. Meanwhile, the SEC also highlighted the crypto enforcement’s insistence on using existing authority.
’21. 20th Century Arrangements for 21st Century Technology’
Meanwhile, the recently announced crypto lawSenator Cynthia Lummis, who is behind the report, stated that it is time to update it with regulations.
“More than 34 million Americans share that they have some form of digital presence. We, on the other hand, regulate this 21st century technology with the 20th century regulation. It’s time to upgrade, and the Lummis-Gillibrand plan achieves that.”
In response, Digital Asset Investor, a crypto enthusiast, criticized it, stating that Gensler sought to use 20th Century regulations to control much of the digital asset space. He wondered what he was missing as the bill also supports the SEC crypto authority.
Laying the groundwork for comprehensive crypto regulation, the bill called for the establishment of a crypto advisory committee to guide regulators.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.