SEC Chair Gary Gensler says "Everything Other Than Bitcoin" is a Security
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During an interview with New York Magazine, the Chair of the U.S. Securities and Exchange Commission, Gary Gensler, made a claim that all cryptocurrency transactions are securities, and would fall under the SEC's jurisdiction to regulate.
Gensler pointed out one notable exception to his blanket statement and that is, of course, Bitcoin.
The SEC Chair's statement leaves really no room for misunderstanding, and this would also include the top cryptocurrencies like Ethereum (ETH) and Binance Coin (BNB).
“Everything other than Bitcoin, you can find a website, you can find a group of entrepreneurs, they might set up their legal entities in a tax haven offshore, they might have a foundation, they might lawyer it up to try to arbitrage and make it hard jurisdictionally or so forth.
They might drop their tokens overseas at first and contend or pretend that it’s going to take six months before they come back to the U.S., But at the core, these tokens are securities because there’s a group in the middle and the public is anticipating profits based on that group.”
- Gary Gensler, Chair of the U.S. Securities and Exchange Commission
Back in 2021, Gensler made the headlines multiple times during the year for refusing to state whether Ethereum was a security, and outright calling Stablecoins a security.
It is not hard to believe that this is now the start of a full-scale attack on cryptocurrency by the SEC and other regulatory agencies, at least in the United States.
This has been quite a journey to this point, but I can't help but think the SEC and other regulatory agencies were setting up this showdown against cryptocurrency from the beginning.
“The conflicts in these storefronts, we do not allow in traditional finance, we don’t allow in the securities markets, we don’t allow it in the commercial banking markets, and we don’t allow it in crypto because these storefronts are fundamentally and generally noncompliant with the securities laws as we know them.”
- Gary Gensler, Chair of the U.S. Securities and Exchange Commission
When a friend sent me the quote by Gary Gensler, I did not believe them until I saw it for myself.
I did not expect Gensler, or really any regulatory head, to outright frame all of crypto as a security.
If I am being honest, I think the SEC is definitely about to come down hard on any and every cryptocurrency company within the jurisdiction of the United States.
I really hope I am wrong on this one though.
What are your thoughts on this news?
Is this a declaration of war on all cryptocurrency, besides Bitcoin?
See ya!
:)
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