Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Gary Gensler Asks SEC Staff to Fine-tune Crypto Compliance – Says ‘Vast Majority Are Securities’ – Regulation Bitcoin News
The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, revealed that he has asked staff at the SEC to fine-tune compliance for crypto tokens and intermediaries. He emphasized that the vast majority of crypto tokens are securities.
SEC Chairman Gary Gensler on Crypto Regulation
Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), spoke about crypto regulation and compliance at the Practicing Law Institute’s SEC Speaks conference on Thursday.
Noting that the core principles of the SEC’s bylaws apply to all securities markets, including securities and intermediaries in the crypto market, he stated:
Of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities. The offering and sale of these thousands of crypto-security tokens is covered by the securities laws.
Gensler admitted that some crypto tokens may not meet the definition of a security. “These probably represent only a small number of tokens, although they may represent a significant portion of the crypto market’s overall value,” he opined.
For example, he previously indicated that bitcoin, the largest cryptocurrency by market capitalization, is a commodity and falls under the Commodity Futures Trading Commission (CFTC).
The SEC chairman described bitcoin during his speech on Thursday:
Bitcoin, the first crypto token, is referred to by some as “digital gold”: trading like a precious metal, a speculative, small – but digital – store of value.
Gensler pointed out that some people in the crypto industry have called for greater “guidance” regarding crypto assets. He emphasized that for the past five years, the commission “has spoken with a pretty clear voice here: through the DAO report, the Munchee order, and dozens of enforcement actions, all voted on by the commission.”
Stressing the need for investor protection, the SEC chief said:
I have asked the SEC staff to work directly with founders to get their tokens registered and regulated, where appropriate, as securities.
He noted that “A handful of cryptocurrency tokens are registered under the existing regime.” Nonetheless, he acknowledged that given the nature of crypto investments, “it may be appropriate to be flexible in applying existing disclosure requirements.”
As for crypto intermediaries, Gensler said, “I’ve asked staff to work with intermediaries to ensure they register each of their functions — exchange, broker-dealer, custodial functions and the like.”
He concluded: “I look forward to working with crypto projects and intermediaries that want to comply with the laws. I also look forward to working with Congress on various legislative initiatives while maintaining the robust authorities we have today.”
Gensler revealed:
I have asked staff to consider using our regulatory tool to possibly fine-tune compliance for crypto-security tokens and intermediaries.
On Friday, the SEC unveiled its plan to set up a dedicated office to review filings related to cryptoassets.
What do you think of SEC Chairman Gary Gensler’s comments? Let us know in the comments section below.
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