The SEC is challenging the crypto ecosystem in the United States. Cryptocurrencies will be financial securities and therefore should be regulated accordingly.
A few days ago, Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), gave a speech about cryptocurrencies. In short, the entire crypto ecosystem can be disrupted at the regulatory level. According to him, the vast majority of tokens are financial securities, not currencies or commodities.
SEC Throws Chill on the Crypto Ecosystem in the United States
In the words of Gary Gensler himself: “I think that out of almost 10,000 tokens in the cryptocurrency market, the vast majority are financial securities. The offerings and sales of these thousands of crypto-currency securities are subject to applicable law. And this is extremely important, since financial securities are strictly regulated in the US by the SEC. And if cryptocurrencies fall under this status, it could mean the end of many projects.
Cryptocurrencies will be financial securities
Indeed, financial securities are associated with shares or shares in companies with very strict rules. It is impossible, for example, to promote it somehow. And the legal risks are great. If this status were formalized, the entire functioning of the crypto-ecosystem could be transformed.
Gary Gensler urges SEC teams to work with entrepreneurs to register their tokens as financial securities. And the chairman of the commission is well aware that all this is very delicate. Thus, the SEC may be “flexible” in certain areas, but its goal always remains the same – to protect consumers: “Investors deserve protection from fraud and manipulation. The law requires such protection.”
and therefore should be regulated as such
And this applies to all intermediaries offering services in cryptocurrency. Many projects can be stopped if the SEC finds that they have sold financial securities without registration. And the American financial policeman has already brought down several such projects: Ripple, for example, is in a difficult position. Coinbase also had problems…