U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler came up with a “fresh” idea last week that all cryptocurrencies other than bitcoin are securities. He stated this in an interview with New York Magazine. The cryptans criticized him in response.
This is not the first time Gensler has said that the SEC should regulate all but the main cryptocurrencies. However, if earlier these were just allegations, now, when the industry is being raided by American regulators, his words sound much more terrible. Gensler’s claims are based on the fact that cryptocurrencies are created by a group of businessmen who use shady schemes to attract investors. Most often promising them mountains of gold.
Since investors hope to make a profit from their investments, cryptocurrencies automatically begin to be perceived as securities. Only bitcoin, with its unique history of creation, does not fit this definition.
Cryptons took this news with hostility. They believe that the SEC has no right to control this asset class.
Jack Chervinsky of the Blockchain Association explained his position:
The SEC does not have the authority to regulate any of the cryptocurrencies until the regulator proves its case in court. For each asset, separately, on an individual basis.
This idea was supported by SEC Commissioner Hester Pierce, who called on Congress to expedite the implementation of legislation and the official classification of cryptocurrency assets. Until then, regulators like the SEC will nightmare the industry with enforcement action. And there are already precedents. “Using enforcement to inform people about what the law is in an emerging industry is not an effective or fair way to regulate,” Pierce said, commenting on the Kraken incident.
Until there is a solid regulatory framework for digital assets in the US, the SEC will continue its war on crypto, whether it has the right to do so or not, experts say.
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