Gensler reaffirmed his position that, with the exception of Bitcoin, all crypto transactions are governed by securities rules. Attorneys tend to disagree.
Gary Gensler’s latest interview with New York Magazine (NYMAG) has fomented the crypto market once again.
Except for Bitcoin spot trading, the SEC chairman underlined that he views all crypto assets and all transitions to be subject to U.S. securities laws.
While crypto assets have not yet been formally classed, Gensler believes that “everything but Bitcoin” is security.
According to him, the individuals behind all crypto initiatives and networks are secretly attempting to get investors to purchase tokens.
Those behind cryptocurrencies use a variety of complicated and legally opaque strategies to promote their tokens and entice investors, but at the most fundamental level, they are attempting to promote their tokens and attract investors.
Jacob Chervinsky, attorney and chief policy officer of the Blockchain Association, contended that Gensler’s words or opinion are not law. On Feb. 26, he said:
“Unless it establishes its case in court, the SEC lacks the ability to regulate any of them. For each and every asset, one at a time, individually.”
SEC Commissioner Hester Pierce has reiterated this sentiment, urging Lawmakers to expedite the introduction of legislation and legal categorization of crypto assets. Until then, authorities such as the SEC will take matters into their own hands with these enforcement measures, as they have enthusiastically done throughout the year.
In reaction to the SEC’s Kraken crackdown, she said earlier this month, “Using enforcement actions to inform people what the law is in a new business is not an efficient or fair method of regulation.”
Unless there is a comprehensive regulatory framework for digital assets in the United States, the SEC will continue to wage war on cryptocurrencies regardless of whether it has the authority to do so.
Asia’s cryptocurrency markets are rising again early Monday morning. The total market value has increased by 2.4% to $1.13 trillion, although it has been somewhat range-bound for most of the month.
According to CoinGecko, Bitcoin was up 2.2% to $23,600 and Ethereum was up 3.3% to $1,644 at the time of writing.
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