SEC boss says laws on crypto are clear in the US

Gary Gensler once again claimed that traditional securities laws are enough to regulate crypto companies & protect Investors.

Gary Gensler is Chairman of the United States Securities and Exchange Commission (SEC). Over the last couple of years, Gensler has been regulating the crypto sector dominantly on behalf of traditional securities laws. Gensler many times stated that the majority of the cryptocurrencies are securities, so crypto platforms should register with the agency.

On 27 April 2023, Gary Gensler posted a video on Twitter, and in that video clip he talked about the US crypto regulation system.

Gensler described the crypto assets as an investment contract and urged the platforms, which provide investment in these assets, to register with the agency.

Further SEC chairman noted that many crypto platforms claim that their investment contract is something else to keep SEC’s regulatory authority away but he believes that laws are made to determine what “something is”. 

Intermediaries for investment contracts are required to comply with securities laws & register with @SECGov.

Instead, many crypto platforms are contending that their investment contracts are something else.

The law cares about what something actually is, not what you call it.

— Gary Gensler (@GaryGensler) April 27, 2023

Gensler also noted that the majority of the people claim that there is no clear crypto regulation framework. Against such a claim, Gensler said that laws are clear enough in the US and if any company is a securities exchange, clearinghouse, broker, or dealer, you must come into compliance, then register with the SEC body.

Many crypto Twitter users showed their quick response against this latest statement passed by the SEC chairman and noted that earlier Gensler’s view was different on Cryptocurrencies.

weird cause a guy told me three quarters of this space has already been determined by the securities and exchange commission not to be a security pic.twitter.com/0YsRcae3St

— RYAN SΞAN ALTCOIN – rsa.eth (@RyanSAdams) April 27, 2023

The response attached video contained a speech passed by Gensler in 2018 at MIT, where he said that cryptocurrencies are not securities. 

Two weeks ago, Gensler was grilled by members of Congress. There Gensler faced huge criticism over bad leadership & unclear Crypto regulatory approach. In the hearing, Gensler failed to state the exact nature of crypto assets. 

Read also: UK’s financial watchdog open to collab with crypto firms: Crypto regulation