US Securities and Exchange Commission (SEC) Chairman Gary Gensler revealed that he has asked staff at the SEC to refine compliance for crypto tokens and intermediaries. He emphasized that the majority of crypto tokens are securities.
SEC Chairman Gary Gensler on Crypto Regulation
Gary Gensler, chairman of the United States Securities and Exchange Commission (SEC), spoke about crypto regulation and compliance at the Institute of Law Practice’s SEC Speaks conference on Thursday.
Noting that the core principles of the SEC regulation apply to all securities markets, including securities and intermediaries in the cryptocurrency market, he stated:
Of the nearly 10,000 tokens on the crypto market, I believe the majority are securities. This offering and sale of thousands of crypto security tokens is subject to securities laws.
Gensler acknowledges that some crypto tokens may not meet the definition of a security. “These are likely to represent only a small number of tokens, although they may represent a significant portion of the aggregate value of the crypto market,” he said.
For example, he previously pointed out that bitcoin, the largest cryptocurrency by market cap, is goodsand is in the sights of the Commodity Futures Trading Commission (CFTC).
The SEC chairman described bitcoin in his Thursday speech:
Bitcoin, the first cryptocurrency token, is what some call ‘digital gold’: trades like a precious metal, a speculative store of value, scarce – but digital.
Gensler pointed out that some in the crypto industry have called for more “guideline” towards crypto assets. He emphasized that over the past five years, the Commission “has spoken with a fairly clear voice here: through the DAO Report, the Munchee Order, and dozens of Enforcement actions, all of which were voted on by the Committee. “
Emphasizing the need for investor protection, the SEC boss said:
I have asked SEC staff to work directly with entrepreneurs to register and manage their tokens, as appropriate, as securities.
He noted that “A handful of crypto security tokens have been registered under the existing regime.” However, he acknowledged that given the nature of crypto investments, “there can be some flexibility in applying current disclosure requirements.”
As for crypto intermediaries, Gensler detailed: “I have asked the staff to work with the intermediaries to ensure they register each of their functions – exchange, broker-dealer, function. surveillance, and the like.”
He concluded: “I look forward to working with crypto projects and intermediaries to comply with the law. I also look forward to working with Congress on various legislative initiatives while maintaining the strong authorities we currently have.”
I asked staff to review using our regulatory toolkit so that they can fine-tune compliance for crypto intermediaries and security tokens.
On Friday, the SEC revealed plans to set up a dedicated office to review records related to crypto assets.
What do you think of SEC Chairman Gary Gensler’s comments? Let us know in the comments section below.
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