On Friday (August 19), U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler published an article in The Wall Street Journal, sharing his views on how markets How should cryptocurrencies be treated?
There is no reason to treat the crypto market differently from the rest of the capital markets just because it uses a additional technology.”
“Recent market events show why it is so important for crypto companies to comply with securities laws,” explained Gensler. “In recent months, several crypto lending platforms have frozen investors’ accounts or gone bankrupt. These investors have to line up in court when it comes to bankruptcy.”
The SEC Chairman emphasized that no matter the financial product, it is an application (App), lending platform, cryptocurrency exchange, or decentralized finance (DeFi) platform.
“Following cases over the decades, the Supreme Court has made it clear that the economic fact of a product – not its label – determines whether it is a security under securities law. “.
While recognizing that “There are costs to complying with securities laws, just as there are costs for car manufacturers to add seat belts,” he pointed out that “there is still a course of action that will allow making positive and meaningful progress.”
Gensler then encouraged crypto trading and lending platforms to “come and talk to SEC staff,” stressing that “The fact that these platforms are compliant with securities laws will benefit investors and investors alike.” cryptocurrency market.”
“In the meantime, the SEC will act as the police that collects information that helps people feel safe. As with car seat belts, we must ensure that investor protections are standard in the crypto market.”
Gensler just outlined what to expect from the SEC regarding crypto regulation. He has been laboriously criticized for taking an enforcement-focused approach to regulating the cryptocurrency market.
The SEC boss also stated that while Bitcoin is a commodity, most crypto tokens have the properties of securities, warning that many of them will fail.