The chief regulator will argue that many cryptocurrencies are within the agency’s jurisdiction.
SEC Chair Gary Gensler will appear before the Senate Banking Committee on Tuesday to propose, with unwavering commitment, that most virtual currencies are securities.
The chief regulator will argue that many cryptocurrencies are within the agency’s jurisdiction.
SEC chair maintains most digital assets are securities
US Securities and Exchange Commission (SEC) Chair Gary Gensler will maintain his position that many cryptocurrencies are within the control of the regulator.
According to a written testimony that’s set for delivery to the Senate Banking Committee on Tuesday, the chief regulator will argue his frequent talking point.
“Given this industry’s wide-ranging noncompliance with the securities laws, it’s not surprising that we’ve seen many problems in these markets,” Gensler said in the remarks released Monday.
Gensler will double down on his policy direction: “The vast majority of crypto tokens likely meet the investment contract test,” according to his testimony. “Given that most crypto tokens are subject to the securities laws, it follows that most crypto intermediaries have to comply with securities laws as well.”
Read more: SEC delays decision on 7 key Bitcoin ETFs
Multiple Battlefronts
The position the SEC Chair has maintained comes amidst growing concern of a witch hunt by the regulator.
Just last week, the regulator lost to Grayscale at the appeals court on the refusal to allow Grayscale application to convert to a spot Bitcoin ETF.
In August, Ripple Labs (XRP owners) won partially when Judge Analisa Torres ruled that the way Ripple sold tokens to retail customers did not violate securities law.
The hearing comes a few months after the SEC sued both Coinbase and Binance on allegations that the exchanges were selling securities and also refusing to register.
Gensler has said he won’t be testifying concerning ongoing litigations.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
