U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler detailed why he considers all crypto tokens other than Bitcoin as securities. While acknowledging that crypto tokens may have different setups, he stressed that “at their core, these tokens are securities.”
The SEC Chairman believes that all crypto tokens are securities
except Bitcoin.
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler explained why he believes all crypto tokens other than Bitcoin are securities in an interview published Thursday in New York Magazine’sIntelligence.
Gensler believes that the securities watchdog has all the legal tools it needs to oversee the crypto sector, the publication reported, and that SEC bosses believe that with the exception of spot transactions in Bitcoin itself and the actual purchase or sale of goods and services in cryptocurrency, pretty much all types of crypto transactions are already under the SEC’s jurisdiction, it added.
The SEC Chairman was quoted as saying.
Everything but Bitcoin… You can find websites, you can find groups of entrepreneurs, they might incorporate in offshore tax havens, they might have foundations, they might lawyer it up to try to arbitrate, or make it difficult for the jurisdiction, etc.
“They might first drop the token overseas and take six months before it comes back to the U.S. and contend or pretend,” Gensler continued, without naming the cryptocurrency specifically.He stressed.
But at the core, these tokens are securities because there is a group in the middle and the public expects to profit based on that group.
In response to Gensler’s assertion that all crypto tokens except BTCare securities, many people took to social media to oppose the SEC chief. Attorney Jake Chervinsky tweeted.
Chairman Gensler may have a preconceived notion that all digital assets are securities, with the exception of Bitcoin, but his opinion is not the law.
“The SEC lacks the authority to regulate any of them until and unless it proves its case in court,” Chervinsky stressed, adding that this must be done “for each asset, one by one, individually.” Logan Bollinger, also an attorney, stated on Twitter. In this country, it is the judge, not the SEC chairman, who ultimately decides what the law means and how it should be applied.” That doesn’t mean that his ideas are not relevant. It’s just not conclusive.”
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