SEC Chairman Gary Gensler Emphasizes Most Crypto Tokens Are Securities – Says ‘The Law Is Clear’

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has reiterated that most crypto tokens are securities, stressing that “the law is clear on this.” However, the Commodity Futures Trading Commission (CFTC) has asked Congress to grant rights to the cryptocurrency spot market, and several bills have been introduced in Congress this year to give the CFTC necessary rights.

SEC Chairman Gary Gensler on Crypto Regulation

The issue of which federal agency should regulate the cryptocurrency market has gained much traction in recent times. While the Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has said that the majority of crypto tokens are securities and should be in the sights of his agency, many and lawmakers believe it should be the Commodity Futures Trading Commission (CFTC) that regulates the crypto sector. Furthermore, three bills were introduced in Congress this year to make the CFTC the regulator of the cryptocurrency market.

In an interview with CNBC on Monday, Gensler answered a question about who will regulate the crypto sector. The SEC director explained:

Our agency is the watchdog of this basic deal. When a group of entrepreneurs is raising money from the public and the public is anticipating a profit, they need disclosure – full disclosure, fair and honest, and that is the core bargain in the market. our capital.

The SEC chairman continued: “You can take the risk, but the person who raised the money or the people who raised the money have to disclose various information to you. That’s how our capital markets work best and the SEC is very good at it and that’s what we do. He emphasized:

The law is clear on this. I believe that based on facts and circumstances, most of these tokens are securities.

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On Monday, at a meeting of the Financial Stability Oversight Council (FSOC), chaired by Finance Minister Janet Yellen, Gensler reiterated: “Of the nearly 10,000 tokens in the crypto market, the share is Big is the stock. The offering and sale of these crypto-security tokens is governed by securities laws. Since most crypto tokens are securities, many crypto intermediaries are trading securities and must register with the Securities and Exchange Commission in some capacity. “

Regarding the SEC’s cooperation with the CFTC, Gensler emphasized:

To the extent that one day crypto intermediaries may need to register with both the SEC and the Commodity Futures Trading Commission (CFTC), I would like to note that we currently have dual registrants. in the broker-dealer space and in the fund advisory space.

Meanwhile, the CFTC has asked Congress to give authority over the cryptocurrency market. CFTC President Rostin Behnam last week explained that because the CFTC is a derivatives regulator, it does not currently oversee the cash market. Therefore, he asked Congress for “cash regulators, so that we can participate in the bitcoin cash market, the ether cash market, and other digital commodity token [market]] “, the CFTC director explained last week.

He also said that the SEC and CFTC will have to “figure that out legislatively” because crypto is a new asset class. “There are different components and characteristics of this asset class as opposed to traditional asset classes,” Behnam said, adding: “We have to rely on 70-year-old case law to determine what’s a security, what’s a commodity.”

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