Gary Gensler Asks SEC Staff To Tweak Crypto Compliance — Says ‘The Majority Are Securities’ – Regulation Bitcoin News

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has revealed that he has asked SEC staff to fine-tune crypto token and intermediary compliance. He emphasized that the majority of crypto tokens are securities.

SEC Chairman Gary Gensler on Crypto Regulation

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler spoke about cryptocurrency regulation and compliance at the SEC lecture at the Institute of Law on Thursday.

Noting that the core principles of SEC statutes apply to all securities markets, including securities and crypto market intermediaries, it said:

Of the approximately 10,000 tokens in the crypto market, I believe the majority are securities. The offering and sale of these thousands of cryptographic security tokens are subject to securities laws.

Gensler acknowledged that some cryptographic tokens may not meet the definition of security. “These are likely to be just a handful of tokens, although they may represent a significant portion of the total value of the cryptocurrency market,” he said in his opinion.

For example, he previously indicated that Bitcoin, the largest cryptocurrency by market capitalization, is a commodity and falls under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

The SEC chair explained Bitcoin in his speech on Thursday:

Bitcoin, the first cryptographic token, is sometimes referred to as “digital gold.” It trades like precious metals, is a speculative, scarce yet digital store of value.

Gensler noted that some people in the crypto industry want greater “guidance” regarding cryptocurrencies. He stressed that over the past five years, the Commission has “spoken with a very clear voice here, through DAO reports, Munch orders, and dozens of enforcement actions, all voted on by the Commission.” did.

Emphasizing the need for investor protection, SEC bosses said:

I have asked SEC staff to work directly with entrepreneurs to register and regulate their tokens as securities where appropriate.

“A handful of cryptographic security tokens have been registered under the existing regime,” he said. Nonetheless, he acknowledged that given the nature of cryptocurrency investments, “a flexible application of existing disclosure requirements may be appropriate.”

Regarding crypto brokers, Gensler elaborated:

He concludes: I also look forward to working with Congress on various legislative initiatives while maintaining my current strong authority. ”

Gensler clarified:

I have asked staff to consider using a regulatory toolkit to fine-tune compliance with cryptographic security tokens and intermediaries.

On Friday, the SEC announced plans to set up a dedicated office to review filings related to crypto assets.

What do you think of SEC Chairman Gary Gensler’s comments? Let us know in the comments section below.

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