Gary Gensler’s Explosive Claims: All Crypto Are Security Except Bitcoin

Key Points:

• All things other than Bitcoin, according to SEC Chair Gary Gensler, are covered under the agency’s purview.
• Other cryptocurrency initiatives, he said, are securities because there is a middle group, and the public expects earnings based on that group.
• Attorneys for cryptocurrencies have rejected statements made by the head of the US Securities and Exchange Commission.

Except for spot Bitcoin transactions and the actual purchase or sale of products or services using cryptocurrencies, Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), thinks that nearly every sort of cryptocurrency transaction is subject to SEC regulation.

In an interview with New York Magazine, Gary Gensler stated:

“But at the core, these tokens are securities because there’s a group in the middle and the public is anticipating profits based on that group.”

This assertion is crucial to Gensler’s argument that these are legitimate securities transactions that fall within the SEC’s purview.

Despite the well-funded cryptocurrency campaign, which is unlikely to give up anytime soon, the SEC has emerged as the major civil regulator of the sector. Yet, there are still uncertainties regarding the agency’s recent activities and the effectiveness of its present enforcement policy.

There are people behind these cryptocurrencies using all sorts of complex and legally opaque mechanisms, but at the most basic level, they are trying to promote their tokens and attract investors. According to Gary Gensler, Bitcoin is fundamentally different from other crypto projects in this regard due to its unique history and creation story.

Attorneys for cryptocurrency have rejected statements made by the chairman of the US securities regulator. In contrast, Gensler’s “opinion is not the law,” according to Jake Chervinsky, a lawyer and policy director at Blockchain Association, a crypto advocacy group.

In a series of tweets, Gabriel Shapiro, general counsel of investment company Delphi Laboratories, described the almost impossible enforcement the SEC would have to take out on the sector in order to establish its rule.

The SEC and other federal government agencies did nothing to stop the crypto scam that cost tens of billions of dollars in damages over the last year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News