Gensler makes some statements that ruffle a few crypto feathers
Same song and dance
Gary Gensler’s recent interview with New York Magazine in which he declared all crypto assets to be securities, except for Bitcoin, has drawn criticism from the crypto community. Gensler’s position is that crypto tokens are securities because they have a group in the middle that the public anticipates profits based on.
While the classification of crypto assets has yet to be officially established, regulators such as the SEC will continue their enforcement actions until there is a regulatory framework for digital assets in the U.S. Crypto markets have remained relatively range-bound for most of the month, but the total market capitalization is up 2.4% to reach $1.13 trillion, with Bitcoin trading at $23,600, up 2.2%, and Ethereum up 3.3% to reach $1,644 at the time of writing, according to CoinGecko.
Interview with New York Magazine
Gary Gensler’s recent interview with New York Magazine has stirred up controversy in the crypto community. Gensler stated that all crypto assets, with the exception of Bitcoin, are securities, and all transactions involving them are subject to U.S. securities laws. According to Gensler, the people behind all crypto projects and networks are trying to lure investors into buying the tokens. He believes that the tokens are securities because there is a group in the middle, and the public anticipates profits based on that group.
The classification of crypto assets has yet to be officially established, but regulators such as the SEC will continue their enforcement actions until there is a regulatory framework for digital assets in the U.S. Hester Pierce, a commissioner at the SEC, has urged Congress to accelerate the rollout of legislation and official classification of crypto assets. Until then, the SEC will take things into its own hands with these enforcement actions, as they have been doing with gusto this year.
Viewpoint…not law
While Gensler’s position has drawn criticism from the crypto community, his viewpoint is not law, according to Jake Chervinsky, a lawyer and chief policy officer at the Blockchain Association. Chervinsky argues that the SEC lacks the authority to regulate any crypto assets until it proves its case in court. For each asset, every single one, individually, one at a time.
The lack of regulatory clarity around crypto assets in the U.S. has created a lot of uncertainty for investors and businesses operating in the space. Until there is a robust regulatory framework for digital assets in the U.S., the SEC will continue its war on crypto whether it has the jurisdiction or not.
Monotone
Gary Gensler’s recent interview with the magazine and his monotonous mindset of declaring all crypto assets, except for Bitcoin, to be securities, has drawn criticism from the crypto community. While the classification of crypto assets has yet to be officially established, regulators such as the SEC will continue their enforcement actions until there is a regulatory framework for digital assets in the U.S. The lack of regulatory clarity around crypto assets in the U.S. has created a lot of uncertainty for investors and businesses operating in the space.
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