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All Cryptos Other Than BTC Are Securities, Says SEC Chair

Gary Gensler, the chairman of the US Securities and Exchange Commission, has reiterated his stance on crypto assets. He stated all cryptocurrencies other than Bitcoin are categorized as securities. Recently, he appeared in an interview conducted by New York Mag (NYMAG) and attempted to deter the crypto industry for another time.

SEC Chair Considers Every Crypto a Security Other Than Bitcoin

The SEC chairman repeated that his consideration of the crypto assets as well as the transactions performed with these assets, is the same as before. He disclosed that all cryptocurrencies have to comply with the securities laws implemented in the United States. Nonetheless, he excluded Bitcoin-based spot trading from that list.

Though the official categorization of the crypto assets has not been made yet in the United States, Gensler has labelled all the crypto assets as securities other than the primary crypto. He is of the view that the networks and people at the back of the crypto projects hard making attempts to attract investors to purchase their digital tokens. The chair added that the crypto projects utilize several legally opaque and complex mechanisms.

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While supporting his categorization, he stated that these assets are classified as securities as a group exists in the middle while the common message anticipates yields based on the respective group. Jake Chervinsky, a lawyer and the Blockchain Association’s chief policy officer, argued that the words spoken by the SEC chairman do not count as law.

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On February 26, Chervinsky mentioned that the US securities regulator does not have the authority to regulate even one crypto asset. The same idea has been repeated by Hester Pierce (an SEC Commissioner), who persuaded the SEC to speed up the establishment of legislation as well as an official categorization of digital assets. Till that time, she added, the SEC and the other regulatory agencies will attempt to influence things with enforcement actions.

As per Pierce, such measures by the regulatory authorities signify that the legislative system of the country is not strong enough to ensure regulation. She made this statement while pointing toward the enforcement action that the SEC took against the well-known crypto exchange Kraken.

The SEC Commissioner added that the securities regulator of the US will not stop enforcing the crypto entities until the establishment of an adequate regulatory agenda for crypto. Gensler considers that his agency possesses the legal resources required for the supervision of the crypto space. The SEC is busy clampdown the Web3 firms by imposing strict regulations.

Nonetheless, the enforcement is being witnessed even before the approval of crypto-focused legislation by Congress. The SEC chairman additionally says that the new crypto businesses have a structure that is tricky, and it is hard to get them regulated in the jurisdiction of the United States. Gensler has frequently argued that the securities regulator should register several crypto initiatives that meet the characteristics of securities.

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Policymakers Keep on Arguing about the Regulatory Structure to Deal with Crypto

The respective argument has been condemned by many Congress members. Attorney Logan Bolinger commented on this by saying that the views of Gensler regarding the characteristics are not considered law. Because of the particular legislation, the US authorities deal with crypto as property, as is the case with many other jurisdictions. The US policymakers are still arguing over crypto-centred regulatory structures in Congress.


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Mubashar Nawaz (United Arab Emirates)

Mubashar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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