SEC Chair Gensler Defends Stance on Cryptocurrency Amid Complaints, Cites Prior Warnings

SEC Allegedly Delays Support for US Crypto Market Bill, Raising Concerns
Source: Reuters

U.S. Securities and Exchange Commissioner (SEC) Chair, Gary Gensler, discussed the nature of crypto assets and exchanges, asserting that claims of utility cannot shield their backers from regulatory scrutiny.

Gensler addressed this matter during his speech at the Piper Sandler Global Exchange & FinTech Conference, coinciding with recent enforcement actions taken against Coinbase and Binance. The SEC accused both exchanges, respectively the largest in the U.S. and the world, of engaging in the trading of unregistered securities.

Gensler emphasized that even if a crypto asset offers additional utility, it does not exempt it from being classified as an investment contract. However, he mentioned that tokens specifically designed for exclusive use within blockchain ecosystems may be exempted from such categorization. Gensler also highlighted that investors generally acquire these crypto assets with the expectation of earning profits based on the efforts of token issuers.

SEC Chair defends his actions

The SEC chair provided a strong defense of the recent actions taken by the agency, emphasizing to a mainstream finance audience that certain behaviors common in the crypto industry would not be tolerated in traditional finance. Gensler expressed skepticism towards claims made by market participants who argue that they were not adequately informed about the potential illegality of their actions, suggesting that such statements should be scrutinized.

He suggested that these participants may have knowingly taken calculated risks, accepting the possibility of enforcement as part of their business strategy. Furthermore, Gensler challenged the industry’s widespread assertions that it is impossible for crypto platforms to register with the SEC.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post
Introduction to Buying and Selling NFTs

How to Choose the Best NFT: A Comprehensive Guide

Next Post
Introduction to Buying and Selling NFTs

Introduction to Buying and Selling NFTs

Related Posts