Gary Gensler Asks SEC Staff to Fine-Tune Crypto Compliance — Says ‘Vast Majority Are Securities’ – Regulation Bitcoin News

Gary Gensler (chairman of U.S. Securities and Exchange Commission) revealed that he had asked SEC staff to improve compliance for cryptocurrency tokens and intermediaries. Gensler stressed that crypto tokens do not constitute securities.

Gary Gensler, Chairman of the SEC on Crypto Regulation

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), talked about crypto regulation and compliance at the Practising Law Institute’s SEC Speaks conference Thursday.

Noting that the core principles of the SEC’s statutes apply to all securities markets, including securities and intermediaries in the crypto market, he stated:

There are nearly 10,000 crypto tokens available on the market. I think the majority of them can be considered securities. Securities laws cover the sale and purchase of thousands of these crypto security tokens.

Gensler acknowledged that not all crypto tokens meet security criteria. “These likely represent only a small number of tokens, even though they may represent a significant portion of the crypto market’s aggregate value,” he opined.

He indicated, for example, that Bitcoin, which is the most valuable cryptocurrency in terms of market capitalization (market capitalization), was a commodity and fell under the jurisdiction of the Commodity Futures Trading Commission.

During his Thursday speech, the chairman of SEC described Bitcoin:

Bitcoin, the first crypto token, is referred to by some as ‘digital gold’: trading like a precious metal, a speculative, scarce — yet digital — store of value.

Gensler pointed out that some people in the crypto industry have called for greater “guidance” with respect to crypto assets. He stressed that for the past five years, the Commission “has spoken with a pretty clear voice here: through the DAO Report, the Munchee Order, and dozens of Enforcement actions, all voted on by the Commission.”

SEC bosses stressed investor protection and stated:

I’ve asked the SEC staff to work directly with entrepreneurs to get their tokens registered and regulated, where appropriate, as securities.

He noted that “A handful of crypto security tokens have registered under the existing regime.” Nonetheless, he acknowledged that given the nature of crypto investments, “it may be appropriate to be flexible in applying existing disclosure requirements.”

As for crypto intermediaries, Gensler detailed: “I’ve asked staff to work with intermediaries to ensure they register each of their functions — exchange, broker-dealer, custodial functions, and the like.”

He concluded: “I look forward to working with crypto projects and intermediaries looking to come into compliance with the laws. I also look forward to working with Congress on various legislative initiatives while maintaining the robust authorities we currently have.”

Gensler revealed:

I’ve asked staff to consider using our regulatory toolkit to possibly fine-tune compliance for crypto security tokens and intermediaries.

The SEC announced Friday that it will establish a special office for reviewing filings related crypto assets.

Let us know what you think of Gary Gensler’s comments. Please leave your comments below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.