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Chairman of the Securities and Exchange CommissionThe US (SEC) has stated that cryptocurrencies should be treated as investment contracts, so platforms that offer them need to register.
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“Platforms that offer investmentcontracts are required to comply with securities laws. Many crypto platforms pretend that their investment contracts are something else. The law cares about what is, not what you call it,” Gary Gensler tweeted.
An investment contract exists when users invest money in an enterprise with a reasonable expectation of profits received through the efforts of others, the official explains his arguments.
“Crypto markets suffer from non-complianceregulatory requirements. This is not a lack of regulatory clarity. The law is clear, if you are a securities exchange, clearing house, broker or dealer, you must comply with it by registering with us,” Gensler added.
Meanwhile, the cryptocurrency community is discussingvideo from 2018 in which Gary Gensler said that three-quarters of the cryptocurrency market is not securities. Then, a few years before being confirmed as chairman of the SEC, he was a professor at the Massachusetts Institute of Technology (MIT).
Gensler recently spoke out about the promotioncryptocurrencies and hinted that Ethereum could face increased regulatory scrutiny. The official stated that the main function of the SEC is to ensure that companies and even users of cryptocurrencies comply with securities laws. According to him, if the owners of any cryptocurrency expect a profit that depends on the efforts of another company, this is a sure sign of a security.</p>