SEC Chairman Gensler States Current Securities Regulations Sufficient for Cryptocurrency Industry
SEC Chairman Gary Gensler believes that current securities regulations are sufficient to regulate the cryptocurrency field.
In a recent testimony before the US House of Representatives, Securities and Exchange Commission (SEC) Chairman Gary Gensler addressed the issue of cryptocurrency regulation. He stated that the current securities regulations being applied by the SEC are “enough to cover most of the activities that are going on in the crypto field.”
When asked if the SEC has a plan to issue a regulation clarifying how securities laws will apply to digital assets, Gensler replied, “Those regulations already exist. That is the securities regulation that details how to conduct public fundraising.”
Gensler also commented on the state of the cryptocurrency market, stating that it is currently in a lawless period filled with non-compliance. He believes that the majority of cryptocurrency projects are securities under current regulations. He added that only the Securities and Exchange Commission, under the supervision of the House Financial Services Committee and the Senate Banking Committee, along with the courts, have the authority to define what is a security, not crypto exchanges.
Earlier this month, Gensler had taken a clear position on the matter, stating that only Bitcoin (BTC) is not a security, while most other coins will fall under the category and be subject to SEC regulation.
Meanwhile, the Commodity Futures Trading Commission (CFTC), another major financial regulatory agency in the US, has consistently opposed the SEC’s argument, claiming that large cryptocurrencies such as BTC, ETH, and even stablecoins are commodities. The US legislature is currently discussing a bill that would give CFTC the authority to regulate cryptocurrencies as commodities.
When asked about the topic, Gensler stated, “I think there are many regulations that, if applied, would trivialize the securities aspect of crypto.”
Regarding Binance, a platform recently sued by the CFTC for serious irregularities in trading activities, Gensler declined to comment on the matter or whether the SEC would target Binance next. Nevertheless, the SEC has taken legal action against many other exchanges in the past.
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