Gary Gensler, who became the head of the US Securities and Exchange Commission (SEC) with the Biden administration, has been closely interested in cryptocurrencies since the first time he took office. Mentioning the lack of regulation for cryptocurrencies and the weakness of investor protection instruments at every opportunity, Gensler is constantly on the agenda with his statements.
Gensler, who went before the Senate’s Banking Committee in September, made a series of statements and continued his guidance on cryptocurrencies.
Following the meeting, Republican Senator Pat Toomey sent Gensler some written questions about cryptocurrencies. The answers to these questions were published today.
When we look at Gensler’s written statements, we see that he used expressions parallel to his previous statements. In addition, Gensler thinks that the authority granted to them by the law should be interpreted broadly and that their supervisory powers over cryptocurrencies are wide.
While it falls within the SEC’s mandate to oversee which cryptoassets are securities, Gensler says, the SEC doesn’t need to make a general determination about them.
Toomey asks at this point:
“What are the specific features that distinguish a cryptocurrency, which is a security, and a cryptocurrency, which is considered a commodity?”
Gensler answers this question, referring to the law:
“Therefore, whether any financial instrument, including a crypto asset, is offered or sold as a security, subject to certain facts and circumstances.”
As can be seen, Gensler cannot give a clear answer on this issue.
Senator Toomey stated that this response was insufficient, adding, “The failure of President Gensler to provide clear rules for cryptocurrencies underlines the need for Congress to act.” said.