xrp crypto news

SEC Chair Gensler Discusses How Securities Laws Apply to Crypto Tokens — Won’t Say if Ethereum Is a Security – Regulation Bitcoin News

SEC Chair Gensler Discusses How Securities Laws Apply to Crypto Tokens — Won't Say if Ethereum Is a Security – Regulation Bitcoin News
Written by publisher team

The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, explained how securities laws apply to crypto tokens as he outlined the commission’s priorities in regulating the crypto space. “Our role at the Securities and Exchange Commission is to ensure that the public receives basic protections,” he stressed.

SEC President Gary Gensler on Cryptocurrency Regulation

SEC President Gary Gensler discussed cryptocurrency regulation and the agency’s 2022 regulatory agenda on CNBC on Monday.

The chairman explained that, in general, “if you’re raising money from the public, and the public is expecting a profit based on that promoter, the sponsor, and the efforts of that group — that’s within the securities laws, and it’s within the securities laws because Congress is a broad brush.” He explained:

They want to protect you – the investing public – so that you have appropriate information, or what is called complete and fair information, and protect you from fraud, scammers and the like.

Gensler emphasized that investments that call themselves token “still probably, maybe a security.”

While acknowledging that new avenues of investing, including cryptocurrencies and special purpose acquisition companies (SPACs), are “exciting,” the SEC chief emphasized:

Our role at the Securities and Exchange Commission is to ensure that the public receives basic protections.

Gensler also explained, “What’s really old and important is this basic idea that if you raise money from the public and the public is thinking about profit, you have to give them basic disclosures and everything.”

He was also asked to comment on the increase in crowdfunding with cryptocurrencies. The Chairman reiterated that he would not comment on any particular project, saying, “Crypto tokens, I will call them, raise money from the public, and do they share with the public the same set of disclosures that help the public make the decision that they comply with our reality of advertising? Anti-fraud provisions in the Securities Law.

“There are thousands of these projects basically trying to raise money from the public so they can support the idea of ​​entrepreneurship,” the SEC chief described. While emphasizing that he supports innovation, Gensler noted, “It’s about getting it included in the securities laws.” He said:

Unfortunately, many of these are trying to say, “Well, we’re not safe. We’re just something else.”

“I think the facts and circumstances indicate that they are investment contracts, they are securities, and they should be recorded,” Gensler concluded.

He was also asked if Ethereum is a security, noting that the SEC considers XRP as security in an ongoing lawsuit with Ripple Labs and its executives.

However, Gensler declined to comment on whether the ether was safe. The SEC chief confirmed that he would not answer for any cryptocurrency: “I am the chair of a five-member committee that is also a civilian law enforcement agency. So, we don’t participate in these kinds of public forums, we talk about any one project, one possible circumstance, And we provide legal advice over the airwaves in this way.”

Tags in this story

Congress, Crypto, Cryptocurrency Regulation, Ethereum Protection, Fraud, Gary Gensler, Investor Protection, Corrugated Lawsuit, Fraudsters, Securities and Exchange Commission, Chief Securities Officer, Chairman, SEC Chairman, Gary Gensler, Laws SEC, Securities Regulatory, Securities Laws, XRP

What do you think of Securities and Exchange Commission Chairman Gary Gensler’s comments on crypto regulation? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

photo credits: Shutterstock, Pixabay, Wikicommons

disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

About the author

publisher team

All rights are reserved to : arabaoyunoyna