Gary Gensler Warns Cryptocurrency Platforms Must Be Registered With SEC

Key Points:

• US Securities and Exchange Commission Chairman Gary Gensler delivered an essential message about cryptocurrencies in a newly released video.
• He again emphasized that cryptocurrency trading platforms must be registered with the this agency.
• Gensler warns investors that many current crypto platforms are operating in violation of securities laws.

The president of the US securities regulator, Gary Gensler, has taken another blow to the crypto industry who has stated that many crypto platforms are operating in violation of securities laws.

In an April 27 tweet, Securities and Exchange Commission Chairman Gary Gensler shared a 4-minute video of him describing the crypto asset as an “investment contract” before the announcement urges platforms offering such products to register with the SEC to protect US investors.

“Instead, many crypto platforms are contending that their investment contracts are something else. The law cares about what something is, not what you call it.”

He said.

The SEC has been at the forefront of the US crypto crackdown, with Gensler repeatedly asserting that essentially all crypto assets – except Bitcoin (BTC). In Gensler’s view, many crypto companies and platforms violate securities laws if they don’t register with the this agency.

However, this is contrary to the assertions before he assumed the current position. This was widely shared in a video from 2018. He stated that three-quarters of the crypto market is commodities, “not securities”.

The above information may put Gensler in a more disadvantageous situation. Two weeks ago, Congressman Warren Davidson proposed a bill that would require the dismissal of Gary Gensler for disagreeing with his policies to regulate the crypto industry. Hester Peirce – SEC Commissioner, also supported Davidson and accused Gensler of destroying the potential of new technologies. In addition, at a House hearing on the evening of April 19, many members criticized Chairman Gary Gensler for his approach to the field of cryptocurrencies.

Currently, the SEC and Coinbase are also having a fierce legal battle when Coinbase has filed a lawsuit against the this agency for ignoring the questions that the exchange has raised to the committee since July 2022. At the time, Coinbase asked the SEC to answer 50 questions and answers about establishing a complete regulatory framework for the crypto industry, but accused the exchange of listing unregistered securities.

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