SEC Chair Gensler reiterates that ‘most crypto are securities’ before US banking committee
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said: belief In his testimony before the U.S. Senate Banking Committee on September 15, he said that most crypto assets are securities.
Gensler added that the offering and sale of these tokens falls under securities laws and has instructed commission staff to work with issuers to register the tokens.
On the other hand, he noted that the commission must be “flexible” in applying the current legal requirements.
Gensler also said that centralized exchanges and cryptocurrency intermediaries such as DeFi would need to register with the SEC to facilitate trading in these securities.
According to Gensler, registering an entity would allow the regulator to clarify its functions and possibly “split them into separate legal entities to mitigate conflicts of interest and enhance investor protection.” become.
The SEC chair said these entities may “someday (need to be registered)” with the Commodity Futures Trading Commission (CFTC) as they also facilitate the trading of non-security tokens against cryptographic security tokens. rice field.
On the other hand, traditional financial companies looking to enter the cryptocurrency market may also need to register with the SEC. Chairman Gensler said:
“Companies operating in other well-regulated markets that wish to enter the crypto market must do so in compliance with proven investor protection rules, while existing crypto security intermediaries are You must do so in compliance with the Home Protection Regulations, as well.”
Gensler emphasized that stablecoins have similar characteristics to money market funds, other securities and bank deposits. He continued that those attributes determine whether they are “stocks in money market funds or other types of securities.” If they are securities, they must be registered with financial regulators.
The SEC chairman has repeatedly asked the cryptocurrency community to talk to regulators. However, the community has criticized the Commission for adopting a “regulation by enforcement” approach,
The SEC is currently involved in several legal battles with cryptocurrency companies such as Ripple (XRP), LBRY and Coinbase over violations of securities laws.
