SEC Chair Gary Gensler Slams Crypto Industry Ahead Of Senate Hearing Today, Says Most Crypto Tokens Are Securities

Join Our Telegram channel to stay up to date on breaking news coverage

US Securities and Exchange Commission (SEC) Chair Gary Gensler shows no signs of softening his stance toward the crypto industry, saying in written testimony ahead of a Senate Banking Committee hearing today that the industry has “wide-raging non-compliance” issues and that most tokens are securities.

“Given this industry’s wide-ranging noncompliance with the securities laws, it’s not surprising that we’ve seen many problems in these markets,” his written testimony said. “We’ve seen this story before. It’s reminiscent of what we had in the 1920s before the federal securities laws were put in place.”

He added that the vast majority of crypto tokens are subject to U.S. securities laws and that almost all cryptocurrencies are securities because they fufill the Howey test, a legal standard that determines whether an asset or transaction qualifies as an “investment contract” subject to U.S. securities laws.

“As I’ve previously said, without prejudging any one token, the vast majority of crypto tokens likely meet the investment contract test,” he said in his remarks, released on Monday evening US time. “Given that most crypto tokens are subject to the securities laws, it follows that most crypto intermediaries have to comply with securities laws as well.”

The remarks suggest Gensler is unbowed by legal setbacks over the past two months that triggered market criticism of his regulation-by-enforcement strategy. 

The regulator suffered a partial loss to Ripple Labs in July, when it was ruled that the XRP is not a token when sold to to the public. It received a more chastening defeat to Grayscale in August, when a judge called its decision not to allow the conversion of Grayscale Bitcoin Trust into a spot Bitcoin ETF ”arbitrary and capricious.”

Still, the Ripple ruling was subsequently disputed by a judge hearing another case, and the SEC has indicated it believes an appeal is needed.

Gensler: Crypto ‘Rife With Fraud’ And ‘Hucksters’

The securities watchdog chair, who calls crypto an industry ”rife with fraud” and ”hucksters,” says his aim is out to protect both crypto issuers and investors. 

At today’s hearing, Gensler is expected to provide further insights into the legal cases and also on two of the regulator’s rules that affect the firms in the crypto industry: a proposal on custody, and another one on redefining exchange definitions to formally incorporate crypto platforms.

As the crypto community eagerly awaits the SEC’s high-profile cases against Coinbase and Binance, which are cases that the Chair may not talk about, the agency is being accused of a witch hunt and an overreach of its mandate.  Congressman Tom Emmer aim to limit the SEC’s oversight of the crypto industry.

Related News

  • Ripple’s Top Lawyer Slams SEC For ‘Hypocritical’ Appeal
  • US Senator Says “Terrible Environment” Is Driving Crypto Firms Out Of The US
  • Ark 21Shares Joins Spot Ether ETF Race as Crypto Industry Ramps Up Pressure on SEC After Grayscale’s Legal Win

Wall Street Memes - Next Big Crypto

Rating

Wall Street Memes
  • Early Access Presale Live Now
  • Established Community of Stocks & Crypto Traders
  • Featured on BeInCrypto, Bitcoinist, Yahoo Finance
  • Rated Best Crypto to Buy Now In Meme Coin Sector
  • Team Behind OpenSea NFT Collection - Wall St Bulls
  • Tweets Replied to by Elon Musk
Wall Street Memes
Learn More

Join Our Telegram channel to stay up to date on breaking news coverage

Comments

Post a Comment

Popular posts from this blog

1inch DEX aggregator deploys on Ethereum’s layer-2, Base

1inch Network is integrating its decentralized exchange (DEX) aggregation protocol on Ethereum’s layer-2 solution, Base. The decentralized finance (defi) protocol said the goal is to tap liquidity from leading DEXs, including Uniswap, Balancer, SushiSwap, and Base Swap. In this way, they can refine and offer better swap rates. A highlight of this integration is the inclusion of a limit order feature for Base users to exercise more control over their trades. This allows them to set a specific price at which they wish to execute their transactions. Trades are then automatically processed once the market price aligns with the user’s predetermined value. 1/ A new adventure begins Our mascot, guided by #DeFi and #Web3 vibes, has again discovered a circular blue portal. Join us as # 1inch embarks on the next chapter of its thrilling journey, reshaping the industry's future! And remember to welcome @BuildOnBase! pic.twitter.com/6IPVx5Py3S — 1inch Network (@1inch) August 24, 2023
Read more

Crypto AI Economy Suffers $730 Million Loss in 2 Months as Interest Wanes

Image
Less than two months ago, a collection of 74 listed cryptocurrencies centered around artificial intelligence (AI) amassed an impressive $4 billion valuation. However, the intervening weeks have seen a sharp decline in crypto-AI economy gains, with losses of $730 million. The three most prominent AI-driven crypto projects have all suffered double-digit losses, ranging from 10% to 29.58%, against the U.S. dollar over the last 30 days. Interest in the Combination of Crypto and Artificial Intelligence Has Declined, Crypto-AI Token Economy Sheds $730M Various data points suggest that interest in and value of crypto-AI projects has waned. Global search trends for “crypto ai” peaked in early February 2023, with a Google Trends’ score of 100. Despite the rise, over the past 90 days, the score has slumped to a low of 22. Slovenia, the Netherlands, Cyprus, Lebanon, and Nigeria make up the top five countries interested in “crypto ai” searches at present. Global search trends according to Googl
Read more

Paysenger Offers The Best Of Web2 And Web3 On Its Social Platform

Paysenger has emerged as a popular choice for content creators and influencers due to its exciting platform that lets them collaborate with brands and interact with fans. The platform’s rapid growth has put its native token, EGO, on track to become one of the most attractive investment opportunities in the crypto space. The consistent development of the content creators’ market has led to a significant amount of investment flowing into this space, opening up a gap for an exclusive platform that specifically caters to the needs of influencers and social media personalities. Paysenger has managed to fill that gap with its collaboration platform that offers tools for content monetization and audience engagement. Paysenger has leveraged the power of Web3 to allow content creators to engage with their audience while simultaneously monetizing their popularity. The platform lets creators generate captivating content, sell posts on the NFT marketplace, engage in paid chats with the
Read more