Recently, Gary Gensler had an interview with New York Magazine. In the interview, the chairman argued that all digital assets except Bitcoin are securities and are under the SEC’s jurisdiction.
However, Gensler’s statements sparked a mixed reaction in the crypto community. Some major Bitcoin supporters, like former MicroStrategy CEO, Michael Saylor, applauded the chairman for his assertions.
All Cryptos Are Securities Except BTC – Saylor
Saylor’s tweet stated that Gensler’s remark reinforces the growing agreement that all cryptocurrencies except Bitcoin are considered securities and require regulation by the SEC. As a result, Saylor noted that this development solidifies Bitcoin’s position as the sole cryptocurrency suitable for use as an international currency.
“The consensus within the industry is that all cryptocurrencies, except for Bitcoin, are categorized as securities. As a result, they will fall under the SEC’s regulatory purview. Consequently, Bitcoin is emerging as the sole crypto-asset that could be used as a global medium of exchange,” Saylor tweeted.
However, the attorney representing Ripple in its SEC-Ripple lawsuit, John Deaton, refuted Michael Saylor’s assertion. The Pro-XRP attorney stated that, apart from Gensler and Bitcoin Maxis, there is no agreement within the cryptocurrency industry that all assets besides BTC should be considered securities.
Also read:According to Deaton, there is also a lack of consensus among legal professionals. The lawyer representing members of the XRP community in the Ripple-SEC lawsuit argued that software code should not be classified as a security.
However, Deaton pointed out that if the software code is converted into cryptocurrency and sold in a particular manner, it could be deemed a security, just like any other asset. Deaton alleged that Saylor is aware that his initial statement is untrue.
Chervinsky Asks SEC To Fight Its Case In Court
The XRP attorney argued that Saylor made the statement to “publicize a narrative that steers people away from altcoins and towards BTC.” The founder acknowledged MicroStrategy’s heavy investment in Bitcoin and did not hold Saylor entirely responsible for his remark.
Besides, it is worth noting that MicroStrategy is among the publicly traded firms with a substantial Bitcoin portfolio, as disclosed in its Q4 2022 report. The report revealed that its Bitcoin holdings had risen to a staggering 132,500.
However, Deaton was not the only lawyer who disapproved of Gensler and Saylor’s comments. Blockchain Association’s lawyer, Jake Chervinsky, also argued that the SEC chairman’s remark is not law.
According to Chervinsky, the SEC does not have the legal backing to regulate the entire crypto sector. He added that the securities agencies would have to defend their claim for each asset individually.
“Gensler may have stated that all digital assets other than BTC are securities. However, his statement is not the law. Except the US SEC can defend its stance in court, the agency has no legal right to regulate all digital assets,” Chervinsky tweeted.
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