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The current chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, clarified the application of securities law in the digital finance space and, in particular, to cryptocurrencies.
The SEC chief stressed that the regulator’s role “is to ensure that the public continues to receive basic protection.” This became part of the first SEC regulation program for 2022.
If you’re collecting money from the public, and the public expects profits from this promoter, sponsor, this group’s efforts, that falls under the securities laws because Congress has outlined the rules in broad strokes.
The official added that any tokenized investment is a security.
Answering the question of traders about crowdfunding using cryptocurrency, Gensler emphasized that all these phenomena are ways to attract funds from the population. It is because of this cryptocurrency activity that the Commission is drawing public attention to whether investors are complying with the “anti-fraud provisions of the Securities Act.”
In addition, Gensler expects fintech projects to comply with securities laws and register their investment contracts. When asked whether Ethereum (ETH) is a security or not, the head of the regulator did not answer.
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