SEC Chairman Gensler Insists Most Crypto Tokens Are Securities

https://web3usecase.co/sec-chairman-gensler-insists-most-crypto-tokens-are-securities-says-the-law-is-clear-6d72755537c7

SEC Chairman Gensler Insists Most Crypto Tokens Are Securities: Says ‘The Law Is Clear

The topic of which federal company should regulate the cryptocurrency market has gained a lot of attention lately. While US Securities and Exchange Commission (SEC) Chairman Gary Gensler has stated that almost all crypto tokens are securities and will be within the purview of his company, many people and lawmakers feel that it should be Commodity Futures. Trading Commission (CFTC) that regulates the cryptocurrency sector. Also, this year three payments were launched in Congress to make the CFTC the regulator of the crypto markets.

In an interview with CNBC on Monday, Gensler responded to a query about who should regulate the cryptocurrency sector. The head of the SEC defined:

Our company is a company that monitors this fundamental cutoff price. When a group of entrepreneurs is raising money from the general public and the general public is anticipating an income, they want disclosure — full, honest and truthful disclosure, and that is the primary cut-off price in our capital markets.

The SEC chairman continued: “You can take the risk, but the person raising money or the person raising money has to disclose various information to you. This is how our capital markets work best, and the SEC is great at this and that’s what we do.” He emphasized:

Regulation is obvious on this. I believe mainly based on information and circumstances, most of those tokens are securities.

On Monday, at the Financial Stability Oversight Council (FSOC) meeting, chaired by Treasury Secretary Janet Yellen, Gensler reiterated: “Of the nearly 10,000 tokens in the crypto market, I think the vast majority are securities. The offerings and gross sales of those crypto security tokens are covered by legal securities regulations. Since most crypto tokens are securities, it follows that many crypto brokers are trading securities and need to register with the Securities and Exchange Commission in some way.”

Regarding the SEC’s collaboration with the CFTC, Gensler harassed:

To the extent that crypto brokers will one day have to register with both the SEC and the Commodity Futures Trading Commission (CFTC), I would say that we currently have twin registrars at the brokerage house and the advisory house of money.

Meanwhile, the CFTC has petitioned Congress for authority over the cryptocurrency market. CFTC Chairman Rostin Behnam explained last week that since the CFTC is a derivatives regulator, it does not currently oversee money markets. Therefore, he has asked Congress for “monetary authorities, so that we can enter the bitcoin money market, the ether money market, and the other [markets] for digital commodity tokens,” the CFTC chief explained last week.

He also said that the SEC and CFTC need to “legislatively determine that” because cryptocurrencies are a new asset class. “There are totally different elements and features of this asset class compared to conventional asset lessons,” Behnam said, adding, “We have to rely on 70-year-old case regulation to figure out what is a security, what is a commodity. essential”.

Tags in this story CFTC, cftc crypto regulation, cftc vs sec, crypto regulation, SEC, security chairman gary gensler, sec crypto regulation