The United States Securities and Exchange Commission chair took another shot at the crypto industry, claiming that many crypto platforms are breaking securities laws.
In a tweet on April 27, Securities and Exchange Commission (SEC) chair Gary Gensler shared a 4-minute video of himself describing crypto assets as “investment contracts” before urging platforms that offer such products to register with the SEC to protect American investors.
“An investment contract exists when you invest money in a common enterprise with a reasonable expectation of profits, to be derived from the efforts of others,” he explained.
“There is a lack of regulatory compliance in cryptocurrency markets.” There is no lack of regulatory clarity. […] “The law is clear; if you are a securities exchange, clearinghouse, broker, or dealer, you must comply and register with us,” Gensler added.
The SEC has been at the forefront of the US crypto crackdown, with Gensler consistently asserting that, with the exception of Bitcoin $29,42, all crypto assets fall under the classification of securities. According to Gensler, many cryptocurrency firms and platforms violate securities laws if they are not registered with the SEC.
Many people pointed out in the comments section of Gensler’s latest video that before taking over at the SEC, Gensler had a completely contradictory view of the crypto market.
Over the last week, a viral video of Gensler has been circulating on Crypto Twitter, in which he can be seen lumping crypto in with cash and commodities and referring to digital assets as “non-securities.”
The SEC chair’s remarks are based on a “Blockchain and Money” lecture given by Gensler in 2018 while he was a professor at the Massachusetts Institute of Technology (MIT).
“Three-quarters of the market is non-securities, it’s just a commodity, cash, and crypto,” Gensler said at the time.
Members of Congress grilled Gensler earlier this month during an April 18 hearing, which saw widespread criticism of his leadership and the SEC’s approach to crypto regulation, which appears to be regulation by enforcement. During the hearing, Gensler refused to state on the record whether he considered Ether $1,907 to be a security or not.