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The unprecedented boom in the cryptocurrency industry last year has caught the attention of regulators around the world, each of which has demonstrated a different level of acceptance of the new asset class. For example, the head of the US Securities and Exchange Commission (SEC) has repeatedly expressed his skepticism about the lack of investor protection and information offered by blockchain projects that issue crypto tokens.
Tough approach
After a year of tough stance on the crypto industry, SEC chief Gary Gensler has issued a new disclaimer for crypto projects requiring registration with a regulatory body. While praising the industry’s innovative and entrepreneurial overtones, in a recent interview with CNBC, the main supervisor criticized many of these projects for misleading investors. He noted:
“Crypto tokens, as I’ll call them, collect money from the population. Do they help people achieve financial literacy, reveal the essence of their projects?
He further added:
“Whether it’s crypto tokens, whether it’s SPAC, this is something new. What is old and really important is this basic idea: if you are collecting money from the public and the public is thinking about profit, you have to give them the basic information. ”
Gensler’s main focus during his short term has been to ensure that cryptocurrencies are subject to existing securities laws, as he believes that most of the tokens traded fall into this category. Claiming the same during an interview, he said:
“Unfortunately, too many of these [проектов] trying to say, “Well, we’re not security, we’re just something else.” I think that the facts and circumstances indicate that these are investment contracts, these are securities, and they must be registered. “
Concessions for ETH?
However, when asked about the status of Ether, the second largest token by market cap, the chief declined to comment on “any issues,” stating that the SEC “does not participate in public forums discussing any one project.”
It is noteworthy that before becoming the main boss of the SEC, Gensler said that ETH could pass for a security when tested. This question has been raised by many crypto enthusiasts to point out the SEC’s bias in the months after the agency sued Ripple Labs, the issuer of XRP, for selling unlisted securities.
Regardless of his previous views on the industry, Gensler solidified his position that the SEC should become the main regulator for the crypto sector. In a previous interview with the Wall Street Journal, he insisted that the cryptocurrency fits into the “broad remit of the SEC.”
The agency recently hired a senior advisor specializing in cryptocurrencies to assist with “policy making and cross-sectoral work related to the oversight of cryptocurrency assets.”
Posted by Newt Salamander, Analyst at Freedman Club Crypto News
#SEC #cryptocurrency #regulation #tightened
