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SEC Chairman Gensler explains how securities laws apply to crypto tokens. It won’t say if Ethereum is security.

SEC Chairman Gary Gensler discussed cryptocurrency regulation and the agency’s 2022 regulatory agenda on CNBC on Monday. SEC Chairman Gary Gensler on Cryptocurrency Regulation

They want to protect you – the investing public – so that you have the right information, or what is called complete and fair information, and to protect you from fraud, crooks and the like.

The president explained that in general, “if you raise money from the public and the public anticipates profit based on the efforts of this promoter, this sponsor, this group – it is part of the securities laws. , and that’s part of the securities laws because Congress paints with a broad brush. He elaborated:

Gensler pointed out that investments that call themselves a token “are still probably, maybe a security.”

While acknowledging that the new ways of investing, including crypto tokens and Special Purpose Acquisition Companies (SPACs), are “exciting,” the SEC Chairman noted:

Our role at the SEC is to ensure that the public always enjoys basic protection.

Gensler further explained, “What’s a bit old and really important is this basic idea that if you are fundraising from the public and the public thinks of profit, you have to give them some basic information. and all.”

“There are thousands of these projects that are basically trying to raise money from the public so that they can support an entrepreneurial idea,” said the SEC chairman. While stressing that it supports innovation, Gensler noted that “it’s about building it into securities laws.” He nods:

He was also invited to comment on the increase in crowdfunding using cryptocurrencies. Reiterating that he will not comment on any particular project, the President detailed, “Crypto tokens, I’ll call them, raise money from the public and do they share with the public the same set of disclosures that help them comply? to our truth in advertising? Call it the anti-fraud provisions of the Securities Act.

Unfortunately, far too many of them are trying to say, “Well, we’re no security. We are just something else.

“I think the facts and the circumstances suggest that these are investment contracts, securities and that they should be registered,” Gensler concluded.

He was also asked if Ethereum is a security, citing that the SEC views XRP as security in an ongoing lawsuit with Ripple Labs and its executives.

However, Gensler declined to comment on whether the ether is a safety. Reiterating that he will not respond to any crypto, the SEC boss said, “I am the chairman of a five-member commission which is also a civil law enforcement agency. So we don’t get involved in these type of public forums, talk about a project, a possible circumstance, and give legal advice on air that way.

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Congress, Crypto Tokens, Cryptocurrency Regulation, Ethereum Security, Fraud, Gary Gensler, Investor Protection, Ripple Lawsuit, Scammers, SEC, Chairman of the Sec, Chairman of the SEC, Chairman of the SEC Gary Gensler , SEC Laws, Sec Regulation, Securities Laws, XRP

Kevin helms

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

Image credits: Shutterstock, Pixabay, Wiki Commons

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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