SEC Chair Gensler reiterates that ‘most crypto are securities’ before US banking committee

Must read

The ‘Brussels Effect’ wields real influence over US crypto regulation

The right to privacy is enshrined in many legal traditions around the world. In the United States, it’s protected by the Fourth Amendment; in...

Lack of ‘qualified people’ without more Web3 education, say academics

Australian blockchain academics and educators have called for more robust Web3 education in schools, preparing students for a world that will be dominated by...

Warner Music Group partners with OpenSea to create more Web3 opportunities for artists

The company stated that select artists can launch their NFT collections and limited-edition projects on their own dedicated drop pages. 1174 ...

Market manipulation claims will be hardest ‘nut to crack’ in Bitcoin ETF approval — WisdomTree

“We’re all kind of watching this and seeing what’s going to happen,” said WisdomTree's Will Peck on spot Bitcoin exchange-traded funds in the...

SEC Chair Gensler reiterates that ‘most crypto are securities’ before US banking committee SEC Chair Gensler reiterates that ‘most crypto are securities’ before US banking committee Oluwapelumi Adejumo · 2 hours ago · 2 min read

Gensler said crypto intermediaries, like centralized exchanges and DeFi, facilitating these securities transactions would have to register with the SEC.

2 min read

Updated: September 14, 2022 at 6:01 pm

SEC Chair Gensler reiterates that ‘most crypto are securities’ before US banking committee

Cover art/illustration via CryptoSlate

Xeggex

The Securities and Exchange Commission (SEC) Chair Gary Gensler reiterated his belief that most crypto assets are securities in his testimony before the U.S. Senate Banking Committee on Sept. 15.

According to Gensler, the offer and sales of these tokens fall under the securities laws, continuing that he has directed the Commission’s staff to work with the issuers to have their tokens registered.

Meanwhile, he noted that the commission would have to be “flexible” in applying the current law requirements.

Gensler also said that crypto intermediaries, like centralized exchanges and DeFi, would have to register with the SEC to facilitate these securities transactions.

According to Gensler, the entities’ registration would allow the regulator to delineate their function and possibly “disaggregate their functions into separate legal entities to mitigate conflicts of interest and enhance investor protections.”

The SEC chair noted that these entities might “one day (have to) register” with the Commodity Futures Trading Commission (CFTC) because they also facilitate tradings of non-security tokens against crypto security tokens.

Meanwhile, traditional financial firms looking to enter crypto might also have to register with the SEC. Chairman Gensler said:

“Firms operating in other well-regulated markets that want to enter the crypto market (would have) to do so in compliance with time-tested investor protection rules, (while) existing crypto security intermediaries need to do so in compliance with investor protection rules as well.”

Gensler highlighted that stablecoins have similar features to money market funds, other securities, and bank deposits. He continued that their attributes would determine whether they are “shares of a money market fund or another kind of security.” If they are a security, they would have to register with the financial regulator.

The SEC chairman has repeatedly urged the crypto community to come in and talk to the regulator. However, the community has criticized the commission for adopting a “regulation by enforcement” approach,

The SEC is currently involved in several legal battles with crypto firms like Ripple (XRP), LBRY, and Coinbase over violations of the securities act.

ETHEREUM MERGE WATCH PARTY

More articles

Latest article

The ‘Brussels Effect’ wields real influence over US crypto regulation

The right to privacy is enshrined in many legal traditions around the world. In the United States, it’s protected by the Fourth Amendment; in...

Lack of ‘qualified people’ without more Web3 education, say academics

Australian blockchain academics and educators have called for more robust Web3 education in schools, preparing students for a world that will be dominated by...

Warner Music Group partners with OpenSea to create more Web3 opportunities for artists

The company stated that select artists can launch their NFT collections and limited-edition projects on their own dedicated drop pages. 1174 ...

Market manipulation claims will be hardest ‘nut to crack’ in Bitcoin ETF approval — WisdomTree

“We’re all kind of watching this and seeing what’s going to happen,” said WisdomTree's Will Peck on spot Bitcoin exchange-traded funds in the...

Judge orders SEC to turn Hinman documents over to Ripple Labs after months of dispute

U.S. District Court Judge Analisa Torres overruled the SEC’s second attempt to withhold the documents relating to former Division Director William Hinman, who...