Gary Gensler: Cryptocurrencies are investment contracts and should be regulated

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The chairman of the U.S. Securities and Exchange Commission (SEC) has stated that cryptocurrencies should be treated as investment contracts, so platforms that offer them need to register.

"Platforms that offer investment contracts 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 wrote(Gary Gensler) on Twitter.

An investment contract exists when users invest money in a venture with a reasonable expectation of profits generated throughthe efforts of others," the official explains his arguments.

“Cryptocurrency markets suffer from lack of 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 by registering with us,” Gensler added.

Meanwhile, the cryptocurrency communitydiscusses a 2018 video in which Gary Gensler said that three-quarters of the cryptocurrency market is not a security. Then, several years before being confirmed as SEC chairman, he was a professor at the Massachusetts Institute of Technology (MIT).

Gensler recently spoke out about the promotioncryptocurrencies and hinted that Ethereum may face increased regulatory scrutiny. The official said the SEC's main function 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.