Cryptocurrency companies should be regulated in accordance with securities laws. This was stated by the head of the SEC Gary Gensler during a hearing in the subcommittee on appropriations of the US House of Representatives.
Georgia Democrat Sanford Bishop asked Gensler about the Commission’s willingness to issue “a regulation clarifying the application of securities laws to cryptocurrencies.”
In response, the head of the SEC replied that the regulation mentioned by the congressman does not require clarification. The market has investor protection rules in place, he said, but the industry is rife with “non-compliance with the law.”
Gensler reiterated his thesis that the vast majority of digital assets, with the exception of bitcoin, fall under the definition of securities.
In 2023, the SEC pointed out violations in the work of Coinbase, Kraken, Gemini and Genesis.
In March, Gensler suggested that Proof-of-Stake consensus tokens could be considered securities under US law.
A month before, the head of the department hinted at the possibility of recognizing all cryptocurrencies, with the exception of bitcoin, in this status. His position was criticized by industry lawyers.
Earlier, Gensler called the cryptocurrency market centralized. He urged the platforms to apply to the SEC regarding the recognition of an asset as an investment contract. The official also warned of the possible prosecution of unregistered bitcoin exchanges.
Source: bitcoinlinux.com
