December 11, 2023

Gary Gensler: “Securities laws are time-tested, and cryptocurrencies should adapt to them”

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Gary Gensler: “Securities laws are time-tested, and cryptocurrencies must adapt to them.”

Chairman of the Securities CommissionUS securities and exchanges (SEC) Gary Gensler spoke out about the rise of cryptocurrencies and hinted that Ether may face increased regulatory scrutiny.

In conversation with TheBlock, Gary Gensler(Gary Gensler) stated that the main function of the SEC is to ensure compliance with securities laws by companies and even users of cryptocurrencies. 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.

“Crypto asset operators usually havewebsites, software updaters, PR people with a Twitter account. Crypto companies hire lawyers, often lobby for their interests, and meet with members of the SEC and Congress. It defies logic that there is no common group of cryptocurrency promoters, although they are already everywhere,” Gensler said.

When asked by journalists whether it makes senseto clarify the regulation of ether, given the conflicting views of different departments on this cryptocurrency, Gensler responded that ether falls into an area of ​​​​regulation that already has clarity, but they are mistakenly trying to ignore it. Securities laws have long been time-tested, so it is much better for the cryptocurrency industry to adapt to it itself, Gensler said.

Let us recall that the regulator recently calledcrypto assets OMG, DASH, ALGO, TKN, NGC and IHT securities by filing a lawsuit against cryptocurrency exchange Bittrex. In March, New York Attorney General Letitia James also classified ETH, LUNA and UST coins as securities, accusing the KuCoin exchange of lack of registration.