The SEC chairman confirms that each crypto is a security next to BTC

The SEC chairman confirms that each crypto is a security next to BTC

Gary Gensler's most recent interview with the New York Mag (Nymag) has again put the crypto industry in turmoil.

The SEC chairman repeated that he believes that all crypto-assets and all transitions are subject to US securities laws, with the exception of the spot trade for Bitcoin.

Although crypto assets still have to be officially classified, Gensler said that "everything except Bitcoin" is a security.

In his opinion, people behind all crypto projects and networks secretly try to lure investors to buy the tokens.

"Behind these cryptocurrencies are people who use a large number of complex and legally opaque mechanisms, but basically they try to promote their tokens and to attract investors."

Gary Gensler said in an interview with Nymag: pretty much any kind of crypto transaction is already under the responsibility of the SEC, with the exception of spot transactions in Bitcoin itself and the actual purchase or sale of goods or services with cryptos, "anything but Bitcoin".

-Wu-Blockchain (@wublockchain) 27. February 2023

financial lawyers disagree

He argued that "these tokens are at the core of securities because there is a group in the middle and the public expects profits based on this group".

The lawyer and Chief Policy Officer of Blockchain Association, Jake Chervinsky, argued that Gensler's words or opinion were not the law. On February 26, he :

"The second lacks the authority to regulate one of them to and unless it proves its case in court. For each asset, each individual, one by one."

The idea was repeated by Sec-Commissioner Hester Pierce, who asked Congress to accelerate the introduction of laws and the official classification of crypto-assets. Until then, supervisory authorities, such as the SEC, will take things into their own hands with these enforcement measures, as they did with enthusiasm this year.

"to use enforcement measures to tell people what the law is in an emerging industry is not an efficient or fair way of regulation," she said at the beginning of this month as a response to the procedure of the SEC against octopuses.

Until there is a robust regulatory framework for digital assets in the USA, the SEC will continue its war against crypto, regardless of whether it is responsible for it or not.

outlook on the cryptom market

The cryptoma markets will rise again in Asia this Monday morning. The overall market capitalization rose by 2.4 % to $ 1.13 trillion, but remained relatively fluctuating.

According to Coingecko, Bitcoin had increased by 2.2 % to $ 23,600, while Ethereum rose by 3.3 % to $ 1.644 at the time of writing this article.

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